Update shared on22 Aug 2025
Fair value Increased 6.41%Analyst sentiment on Astera Labs has improved due to stronger revenue prospects from AI-related product momentum, diversification, and rising platform content, leading to an increased consensus price target from $156.44 to $166.47.
Analyst Commentary
- Revenue upside driven by the ramp of the Scorpio P PCIe switch for scale-out in AI racks.
- Expectations for continued momentum from new product introductions.
- Diversification across a broader set of AI platforms supporting growth prospects.
- Increasing content per platform enhancing top-line potential.
- Valuation concerns tempering enthusiasm despite operational outperformance.
What's in the News
- Astera Labs provided Q3 2025 guidance with expected revenue of $203–210 million, GAAP gross margin of roughly 75%, and diluted EPS of $0.23–0.24 on 180 million shares.
- The company was dropped from multiple Russell value and small/midcap indexes.
- Astera Labs formed a strategic partnership with Alchip Technologies to deliver validated silicon and connectivity solutions for hyperscalers building next-generation AI infrastructure, advancing standards such as CXL, Ethernet, NVLink Fusion, PCIe, and UALink.
Valuation Changes
Summary of Valuation Changes for Astera Labs
- The Consensus Analyst Price Target has risen from $156.44 to $166.47.
- The Net Profit Margin for Astera Labs has risen from 25.18% to 26.94%.
- The Future P/E for Astera Labs has fallen slightly from 113.41x to 107.80x.
Disclaimer
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