Analysts Raise Their Projections for Astera Labs After Positive Q3 Performance
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Updated: Nov 05 20250mins
Financial Performance: Astera Labs Inc reported third-quarter revenue of $230.58 million, exceeding analyst expectations of $206.55 million, with adjusted earnings of 49 cents per share, surpassing estimates of 39 cents.
Future Projections: The company anticipates fourth-quarter revenue between $245 million and $253 million, with adjusted earnings expected to be between 50 and 51 cents per share, compared to estimates of 42 cents.
Market Reaction: Despite the positive earnings report, Astera Labs shares fell 6.4% to close at $179.31 on Tuesday.
Analyst Ratings: Following the earnings announcement, analysts from Needham and Stifel maintained a Buy rating on Astera Labs, raising their price targets to $220 and $200, respectively.
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Analyst Views on ALAB
Wall Street analysts forecast ALAB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALAB is 207.31 USD with a low forecast of 155.00 USD and a high forecast of 275.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 152.510
Low
155.00
Averages
207.31
High
275.00
Current: 152.510
Low
155.00
Averages
207.31
High
275.00
Jefferies
Jefferies
Buy
maintain
$225
2025-12-02
Reason
Jefferies
Jefferies
Price Target
$225
2025-12-02
maintain
Buy
Reason
Jefferies keeps a Buy rating and $225 price target on Astera Labs (ALAB) while calling today's 13% decline in the stock an "over-reaction". The roadmap by unveiled by Amazon.com (AMZN) at ReInvent confirming chip specs for Trainium3/Trainium4 and debuting a new Trainium3 UltraServer highlights improved performance, but overall performance still trails other solutions, the analyst tells investors in a research note. The earlier Trainium3 timing is a negative for Marvell (MRVL) as the revenue is shared with Alchip and Trainium4 will likely be a chiplet sale, also limiting revenue, while on the Networking front, key notables include Astera Labs' Scorpio X switch connecting the XPUs in the Trainium3 racks and NVLink Fusion integration into some Trainium4 configurations, which is actually positive for Astera Labs, Jefferies added.
Morgan Stanley
Joseph Moore
Overweight
maintain
$210
2025-12-02
Reason
Morgan Stanley
Joseph Moore
Price Target
$210
2025-12-02
maintain
Overweight
Reason
Morgan Stanley analyst Joseph Moore keeps an Overweight rating and $210 price target on Astera Labs (ALAB), saying that while Trainium 3 opportunity has been clear, Amazon's (AMZN) ReInvent highlights that Trainium 4 will use both UALink and NV Link Fusion, and both of these are opportunities for Astera. Amazon's use of NVLink Fusion caused a tailspin in Astera Labs stock, but it is actually incremental, and the company is likely to have significant potential content for both UALink and NVLink Fusion, the analyst tells investors in a research note.
BNP Paribas Exane
Outperform
initiated
$225
2025-11-20
Reason
BNP Paribas Exane
Price Target
$225
2025-11-20
initiated
Outperform
Reason
BNP Paribas Exane initiated coverage of Astera Labs with an Outperform rating and $225 price target, which represents over 50% upside. The stock has declined 40% from the peak on investor concerns over the market acceptance of UALink, which creates an attractive entry point, the analyst tells investors in a research note. BNP thinks Amazon's next generations of Trainium server systems could drive significant revenue growth opportunities for Astera over the next three years.
Raymond James
Simon Leopold
Market Perform
resume
2025-11-20
Reason
Raymond James
Simon Leopold
Price Target
2025-11-20
resume
Market Perform
Reason
Raymond James analyst Simon Leopold resumed coverage of Astera Labs with a Market Perform rating and no price target. The company is well positioned to benefit from generative artificial intelligence trends but the shares are fairly valued, the analyst tells investors in a research note. The firm sees long-term structural challenges for Astera.
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About ALAB
Astera Labs, Inc. is a global semiconductor company. The Company provides semiconductor-based connectivity solutions for cloud and artificial intelligence (AI) infrastructure. It has developed and deployed its Intelligent Connectivity Platform built from the ground up for cloud and AI infrastructure. Its Intelligent Connectivity Platform provides its customers with the ability to deploy and operate high-performance cloud and AI infrastructure at scale, addressing an increasingly diverse set of requirements. It provides its connectivity products in various form factors, including Integrated Circuits (ICs), boards, and modules. Its PCIe, CXL and Ethernet semiconductor-based connectivity solutions are purpose-built to unleash the potential of accelerated computing at cloud-scale. The Company’s products include Aries products, which include its COSMOS software suite; Taurus products, which are hardware modules based on its Taurus ICs; Leo products; and Scorpio products.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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