Latest news with #Astera
Miami Herald
09-08-2025
- Business
- Miami Herald
Surprising AI chip stock is up 90% in 30 days (and still climbing)
In a space typically dominated by household names, AI chip player Astera Labs has effectively broken through the noise. After another earnings stunner, Astera stock just turned heads on Wall Street again, surprising even the bulls. Moreover, with Astera riding the wave of next-gen data center buildouts, its latest quarterly showing was a clear signal of its rapidly growing influence in AI infrastructure. Don't miss the move: Subscribe to TheStreet's free daily newsletter Mr. Market's reaction was instant and powerful, pushing the stock into one of the year's most explosive tech stock rallies. Given the ferociousness of the move and Astera's growing strategic importance, it seems there's plenty of runway left in this under-the-radar AI stock. Image source: Michael M. Santiago/Getty Images The AI infrastructure space is growing at a breakneck pace as stakeholders rush to lock in the power, connectivity, and capacity needed to scale generative AI workloads. Big Tech is leading the charge. In 2025 alone, Amazon, Google, Meta, and Microsoft are shelling out a whopping $350 billion on data centers, high-speed networks, and specialized chips. Related: Veteran analyst drops 6-word verdict on Apple's $100 billion investment That spending spree is effectively reshaping tech ecosystems and regional economies. Private capital is also chasing the same opportunity. For instance, Brookfield is zeroing in on key investments like liquid cooling, GPUs, and chip fabrication. Apollo is making an even bigger splash, scooping Stream Data Centers to position for years of AI-driven demand. However, the real choke point now is Electricity. Silver Lake committed a massive $400 million just to secure gigawatts of power before buying land, underscoring the critical importance of grid access. Additionally, governments are stepping up, too. The U.S.'s "Stargate Project," with roughly $500 billion in planned investment, is matched by similar efforts from the EU in creating localized infrastructure. However, this scale-up isn't without stress. Data center power needs could double global electricity demand by 2030, weighing down utilities and new facility activations. Still, the upside is massive, with the boom adding 0.7 percentage points to U.S. GDP growth. Moreover, McKinsey estimates global data center investment could reach an eye-popping $6.7 trillion by 2030, suggesting that today's frenzy may just be the warm-up. Astera Labs has done a tremendous job standing out in the crowded semiconductor niche. It's efficiently carved out a critical niche in high-speed, intelligent connectivity, the invisible plumbing that keeps AI and cloud infrastructure running smoothly. Also, it boasts a powerful hardware and software stack that's built for scale. Related: Morgan Stanley resets AMD stock price target after earnings Stuff like PCIe 6.0 smart retimers, gearboxes, and the Scorpio smart fabric switches are all designed to move vast amounts of data between CPUs, GPUs, memory, and storage with minimal latency. On the software end, its COSMOS platform aids in monitoring and optimizing complex systems at scale. As generative AI workloads explode, data centers need ultra-efficient and reliable interconnects to sidestep performance hiccups. At the same time, Astera's PCIe 6.0 and CXL solutions meet this demand head-on, showing off powerful signal integrity for unbundled, rack-scale architectures. On top of that, Astera's powerful partnerships add to its advantage. Its gear is layered into NVIDIA's Blackwell-based MGX AI platforms, while working seamlessly with AMD's tech and other memory and storage providers. Speed matters, too. With its robust Cloud-Scale Interop Lab, Astera constantly tests for cross-vendor compatibility, minimizing deployment risk and speeding up hyperscaler rollout. Hence, with its competitive advantages, Astera is rapidly becoming the connective tissue of next-gen AI systems, powering the shape-shifting AI infrastructure boom. Astera Labs once again stunned Wall Street with another smashing quarterly performance, handily beating estimates across both lines. Shares rocketed over 28.7% on Aug. 6 following the earnings release, as the market reacted sharply to the beat-and-raise quarter. Investors didn't hesitate to reward the performance. Related: Nvidia tops list of veteran analyst's best stocks for rest of 2025 Over the past month, the stock's rally has grown from strength to strength, with it now up close to 90%, and 77% in the past six months. Its Q2 2025 report included non-GAAP EPS of $0.44, comfortably ahead of the $0.32–$0.33 expected range. Similarly, revenues hit $191.9 million, topping the $172 million forecast with year-over-year growth at 150%. The upbeat trend looks set to continue. For Q3, Astera expects sales to fall between $203 million and $210 million, well above consensus estimates, underscoring management's confidence in the long-term growth runway of its AI-focused connectivity solutions. Evercore ISI lifted its Astera Labs stock price target from $104 to $215, on the back of the explosive demand for the Scorpio P Series fabric switches and the upcoming X Series. More News: Veteran analyst spots unexpected star in Apple's earnings reportBank of America drops shocking price target on hot weight-loss stock post-earningsJPMorgan drops 3-word verdict on Amazon stock post-earnings JPMorgan bumped its target to $180, highlighting Astera's growing product pipeline and superb position in PCIe retimers. On top of that, Jefferies' projects' earnings could exceed $3 per share by 2026, a figure that's likely to push the stock to new heights. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CNBC
06-08-2025
- Business
- CNBC
Evercore ISI sees big gains for this under-the-radar 'AI pure play'
Evercore ISI is pounding the table on Astera Labs after the semiconductor company's blowout quarterly results. Analyst Mark Lipacis reiterated his outperform rating on Astera, calling the stock an "AI pure play in [an] accelerating capex market." He lifted his price target by $109 to $215, which suggests the stock can jump 58.6% from its latest close. Astera shares popped more than 34% on Wednesday, reaching an all-time high on the back of the company's strong second-quarter results. The company's third-quarter earnings and revenue guidance also beat analyst expectations. ALAB 1Y mountain Astera Labs performance over the past year. Lipacis is bullish on Astera's AI infrastructure product growth. "We are Buyers of ALAB following its 'Big Beat, Big Raise quarter as we think it is hitting its AI product cycle stride on three dimensions," Lipacis wrote in a Wednesday note to clients. "Against the backdrop of accelerating Cloud CapEx (we model 72% growth in 2025 from 56% in 2024), we think ALAB is positioned to surprise on the upside given its multi-pronged product cycle over the next 1-to-2 years." For the so-called first dimension, the analyst cited growth in Astera's Scorpio P Series, which saw stronger-than-expected ramp in the second quarter. He noted that management announced multiple new designs for the product and said it should ramp in 2026. The Scorpio P Series is a fabric switch purpose-built for AI servers that integrate with Nvidia's Blackwell-based MGX platform. Additionally, Lipacis highlighted Astera Lab's upcoming X-Series fabric switch product line that he said should increase the company's "content per accelerator," or how much revenue it generates for each AI accelerator. He added that customer interest in the X Series is already "robust" with at least 10 unique customers in the pipeline. AI infrastructure has been an increasingly hot investment spot. Astera Labs remains favored among Wall Street analysts, with 14 out of 16 covering the name rating the stock a strong buy or buy, according to LSEG. Their consensus price target suggests shares could be overvalued and drop about 20%, however. Shares of Astera are up 97% over the past month and nearly 35% year to date.
Yahoo
20-06-2025
- Business
- Yahoo
Why AI Stock Astera Labs Was Crushing It This Week
The company has found an appropriate partner to help it win more AI-related business. It's teaming up with a specialty chipmaker based in Asia. 10 stocks we like better than Astera Labs › According to data compiled by S&P Global Market Intelligence, Astera Labs (NASDAQ: ALAB) stock's price was floating almost 11% higher week to date on early Friday morning. Investors were mainly reacting to news the tech infrastructure company reported about a new business tie-up with an Asian peer. On Monday, Astera and Taiwanese chipmaker AIChip Technologies announced in a joint press release that they have formed a strategic business partnership. Together, the two will aim to exploit opportunities afforded by sky-high demand for artificial intelligence (AI) functionalities. AIChip, which specializes in application-specific integrated circuit (ASIC) chips, and Astera are teaming up to offer "validated, interoperable solutions for hyperscalers building next-generation AI infrastructure," according to the press release. As the name suggests, a hyperscaler is essentially an extremely large data center. These are in vogue now due to the heavy resource requirements of AI. Astera and AIChip offered almost no details about their new partnership, including its financial parameters. Given that, it's tough to gauge how this collaboration might affect their fundamentals. Judging by the market's reaction, though, investors don't seem to mind -- teaming up on projects has clear potential to benefit both companies. I think AI companies like Astera are in the midst of a gold rush. I'd absolutely consider buying the stock. Before you buy stock in Astera Labs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Astera Labs wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why AI Stock Astera Labs Was Crushing It This Week was originally published by The Motley Fool Sign in to access your portfolio
Broadcast Pro
22-05-2025
- Business
- Broadcast Pro
Advanced Media wraps up ‘Behind the Lighting with Astera' open house event
Jesper Sorensen, Astera Product Specialist, highlighted their ecosystem and latest flagship lights, while TVTok's team demonstrated smooth set production using Astera products. Advanced Media and Astera wrapped up their open house event, 'Behind the Lighting with Astera,' on May 19, 2025, at GreySea Virtual Production Studio in collaboration with TVTok Dubai. The event drew a crowd of prominent gaffers, directors of photography, rental companies and emerging professionals in the film and photography industries. Attendees had the opportunity to explore two dynamic production sets, each demonstrating the seamless integration of Astera's professional lighting systems with its wireless control solutions. Beyond the technical demonstrations, guests also viewed completed videos filmed and edited on-site in under a day, offering a comprehensive look into real-time production workflows. Jesper Sorensen, Product Specialist for Astera, who presented at the event Astera's disruptive success story and latest products for filming industry that included QuikSpots and LunaBulb, highlighted guests' substantial interest in efficiently utilizing all represented solutions on sets. Having several events with Astera Academy, he also noted a unique format of the event created by Astera users for their own peers. Speaking about the event, Ahmed Abdelwahab, Head of Digital Cinema Department at Advanced Media, commented: 'This event is the outcome of two months of dedicated planning and collaboration with our partners. Our goal was to offer clients a unique experience that not only deepens their understanding of Astera products but also gives them the chance to see and interact with the products in real set. 'Our vision is to introduce a workshop model that enables participants to experience the products firsthand, supporting our core objective of accelerating demand creation.' Advanced Media exclusively represents Astera film lighting products from 2018, the same year Astera entered cinema market with FP series, winning several awards worldwide with its first Titan Tube. Throughout this long-term partnership they built loyal relationship with UAE customers, offering efficient service center and consulting in AMT showroom.
Yahoo
07-05-2025
- Business
- Yahoo
Astera Labs (NasdaqGS:ALAB) Sees Q1 Revenue Jump To US$159M With Positive Earnings Guidance
Astera Labs experienced a significant price move of approximately 35% over the last month. The company recently announced robust Q1 2025 earnings, with sales rising to $159 million from the previous year's $65 million, and a notable transition from a net loss to a net income of $32 million. Additionally, Astera provided a positive revenue outlook for the next quarter. These developments may have contributed to the stock's rise. Despite mixed stock performance in tech-heavy indexes, Astera Labs' advancements in PCIe 6 technology bolstered investor confidence, contrasting with broader market trends. Be aware that Astera Labs is showing 2 warning signs in our investment analysis. NasdaqGS:ALAB Earnings Per Share Growth as at May 2025 The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent 35% rise in Astera Labs' share price reflects investor optimism following its strong Q1 2025 earnings and positive revenue outlook. The company's commitment to advancing PCIe 6 technology and AI infrastructure solutions appears to be a driving force behind this investor confidence. However, over the last year, the stock's total shareholder return was negative, showing a 6.34% decline, indicating challenges in maintaining long-term growth or market sentiment stability. When comparing its performance to the US market and semiconductor industry over the past year, Astera Labs underperformed both, with the broader US market gaining approximately 7.2% and the semiconductor industry seeing an 8.8% increase. The recent developments may prompt a re-evaluation of revenue and earnings forecasts for the company, especially given its expansion plans in AI and CXL technology. Analysts forecast revenue growth of 44.3% annually over the next three years, with profits expected to rise; however, these projections also face uncertainties, including customer concentration risks and evolving technology standards. Despite the recent price movement, Astera Labs' current share price of US$65.65 remains 40.9% below the consensus analyst price target of US$111.16, suggesting potential room for upward movement if the company aligns with these growth expectations. Investors should compare these forecasts against their own assessments to gauge the validity of the price target. Review our historical performance report to gain insights into Astera Labs' track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
