Astera Labs Jumps On Q1 Growth Beat

Astera Labs ALAB rockets 19 % after its Q1 growth smashes estimates. The semiconductor connectivity specialist closed at $121.89 on Monday following a report of 144.1 % year?over?year revenue growth in Q1 2025 that blew past consensus.

Analysts piled on Buy ratings last week, including Stifel Nicolaus's five?star Tore Svanberg, yet price targets lag the rally.

The street's average target sits at $102.55 with the highest at $125, even as some valuation models point to a $135 fair value if current growth persists. Astera's productsPCIe Retimers and Smart Cablesare winning deals with Nvidia NVDA, Amazon AMZN, and Microsoft MSFT, underpinning a track record of beating consensus EPS by 28.4 % on average over the past four quarters.

That momentum comes with heightened valuation risk. Astera trades at a P/E above 460 and a forward P/S of 19.49, versus a sector average of 6.59. Customer concentration and looming competition from giants like Broadcom and Marvell add further pullbacks risk.