Astera Labs (ALAB) Stock Jumps 5% as Analyst Upgrades and Amazon Discloses $134M Stake

TLDR

• Northland upgraded ALAB to Outperform with a $350 price target, sending the stock up 5.4% in pre-market trading
• Q2 revenue hit a record $392.4 million, up 104% year-over-year, beating consensus of ~$360 million
• Non-GAAP EPS of $0.80 beat estimates by $0.11
• Amazon bought 277,777 ALAB stock valued at ~$134 million in Q2, making it the 4th largest holding in its portfolio
• Management guided for ~40% sequential revenue growth in Q3

Astera Labs stock jumped 5.4% in pre-market trading on Monday after Northland upgraded the AI connectivity chip maker to Outperform from Market Perform, setting a $350 price target.

Astera Labs, Inc. Common Stock, ALAB

The stock opened at $321.61, well off its 52-week high of $499.48 but a long way from its 52-week low of $97.89. The move came against a mostly flat broader market, with the Nasdaq up 0.5% while the S&P 500 and Dow were essentially unchanged.

Northland’s call pointed to expectations for positive earnings revisions and an AI infrastructure spending cycle it now views as more durable than previously modeled.

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