ALAB Stock Recent News

Artificial intelligence (AI) has been a leading driver for many tech stocks like Nvidia in recent years. However, as the AI revolution matures, investors may be looking for ideas beyond Nvidia.

Astera Labs' benefits from strong AI demand, expanding product portfolio, and key partnerships despite a recent dip in stock, signaling growth potential ahead.

Astera Labs (ALAB -2.79%) stock is seeing a substantial valuation pullback in this week's trading. The semiconductor company's share price was down 15.4% from last week's market close as of 10 a.m.

The Investment Committee discuss the latest Calls of the Day.

Astera Labs reported its sixth consecutive quarter of record revenues and posted its first quarter of GAAP profitability as a public company in Q4 2024. Astera Labs' robust growth and better cost management are leading to impressive free cash flow generation. I expect Astera Labs' topline and bottom line performance to further improve in 2025 due to hyperscalers' AI CapEx outlook and the production ramp up of Leo and Scorpio products.

Astera Labs, Inc. ALAB shares are trading lower on Tuesday.

Astera Labs reported a strong Q4, beating revenue expectations by 10% and tripling its earnings per share, driven by robust demand for AI data center solutions. Management projects Q1 CY25 revenues to grow 135% y/y, with a second consecutive quarter of GAAP profit, highlighting strong future growth prospects. The Scorpio line of switch product launched last year is expected to contribute ~10% of the CY25 revenues and is projected to be the largest product revenue segment for Astera.

Astera Labs shows strong growth but faces questions about pricing power and capex demand, leading me to move to the sidelines. Despite a 45% return in November 2024, current fundamentals and potential margin pressure make ALAB a 50/50 setup. ALAB's valuation at 59x forward EPS is reasonable, but compressing gross margins raise concerns about its pricing power.

Astera Labs, Inc. (NASDAQ:ALAB ) Q4 2024 Earnings Conference Call February 10, 2025 4:30 PM ET Company Participants Jitendra Mohan - CEO and Co-Founder Sanjay Gajendra - President, COO and Co-Founder Mike Tate - CFO Leslie Green - IR Conference Call Participants Harlan Sur - JPMorgan Blayne Curtis - Jefferies Joe Moore - Morgan Stanley Tore Svanberg - Stifel Tom O'Malley - Barclays Ross Seymore - Deutsche Bank Quinn Bolton - Needham Atif Malik - Citigroup Suji Desilva - ROTH Capital Richard Shannon - Craig-Hallum Operator Hello. Good afternoon.

Astera Labs crushed estimates for the fourth quarter and guided higher than views for the current period. But ALAB stock wavered in extended trading.