Evercore ISI raises Astera Labs stock price target to $215 on AI growth

Published 06/08/2025, 11:38
Evercore ISI raises Astera Labs stock price target to $215 on AI growth

Investing.com - Evercore ISI has more than doubled its price target on Astera Labs (NASDAQ:ALAB) to $215 from $104 while maintaining an Outperform rating on the stock. The semiconductor connectivity solutions provider, currently trading at $135.54 with a market capitalization of $22.35 billion, has delivered an impressive 219% return over the past year.

The significant price target increase follows what the research firm described as a "Big Beat, Big Raise quarter" for the semiconductor connectivity solutions provider, suggesting the company is hitting its stride in the artificial intelligence product cycle. According to InvestingPro data, the company’s exceptional performance is reflected in its 200% year-over-year revenue growth and robust 76% gross profit margin.

Evercore highlighted three key growth drivers for Astera Labs: the Scorpio P Series ramp exceeding expectations with the company’s lead customer, the X Series addition potentially increasing content per accelerator to over $1,000, and robust customer interest in X Series and UALink products across various stages of production.

The firm noted that more than 10 unique customers are engaged with Astera Labs’ newer products, spanning from design wins ramping into production to early engagement phases, with multiple new designs expected to ramp in 2026.

Against a backdrop of accelerating cloud capital expenditure, which Evercore projects will grow 72% in 2025 compared to 56% in 2024, the research firm believes Astera Labs is positioned to exceed expectations given its multi-pronged product cycle over the next one to two years. With a strong analyst consensus rating of 1.62 (where 1 is Strong Buy), InvestingPro subscribers can access 16 additional key insights and a comprehensive analysis of Astera Labs’ growth potential through the Pro Research Report.

In other recent news, Astera Labs Inc. reported strong financial results for the second quarter of 2025, exceeding expectations. The company achieved non-GAAP diluted earnings per share of $0.44, significantly surpassing the forecasted $0.11. Revenue for the quarter reached $191.9 million, representing a remarkable 150% increase compared to the same period last year. These results highlight the company’s robust performance and growth trajectory. There were no reported mergers or acquisitions. Analyst upgrades or downgrades were not mentioned in the recent developments. This information provides investors with valuable insights into Astera Labs’ recent financial achievements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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