Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 9 Dec, 25 | ALAB | Buy | USD 164.73 | USD 173.0 | USD 182.0 | 2 days | Closed |
5.02%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. It offers an intelligent connectivity platform, comprised of semiconductor-based, mixed-signal connectivity products that integrate a matrix of microcontrollers and sensors, and COSMOS. The company provides COSMOS software suite, a connectivity system management and optimization software that enables management and optimization of resources for large fleets at cloud-scale via link, fleet, and RAS management capabilities. In addition, it offers PCIe/CXL smart DSP retimers and cable modules; ethernet smart cable modules for cloud and AI infrastructure; CXL memory connectivity controllers; and smart fabric switches. The company serves hyperscalers and system original equipment manufacturers. Astera Labs, Inc. was incorporated in 2017 and is based in Santa Clara, California.
Strong Improvement in Net Profitability: Net income reached USD 91.1 million in Q3 FY25, compared with a net loss of USD 7.6 million in Q3 FY24
Significant Revenue Growth: Revenue increased to USD 230.6 million in Q3 FY25 from USD 113.1 million in Q3 FY24
Higher Operating Expenses: Operating expenses rose to USD 120.4 million in Q3 FY25, versus USD 96.8 million in Q3 FY24, reflecting higher headcount and expansion-related costs
Gross Margin Contraction: Gross margin decreased to 76.2% in Q3 FY25, compared with 77.7% in Q3 FY24
Astera Labs faces concentrated exposure to a limited number of large hyperscaler and OEM customers, making its revenue growth and product deployment highly dependent on continued demand and purchasing patterns from a small base of customers
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 164.73 | 148.0 | 173.0 | 182.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Revenue Expansion: During Q3 FY25, the Company reported a material increase in revenue, reflecting significantly higher unit shipments and stronger product demand across key offerings. Revenue for the quarter rose to USD 230.6 million, compared with USD 113.1 million in Q3 FY24, driven primarily by increased uptake of Aries, Scorpio and Taurus products and a favourable mix of hardware modules that supported higher average selling prices.
Healthy Gross Profit Despite Mix Impacts: The Company delivered a substantial improvement in gross profit, rising to USD 175.8 million versus USD 87.9 million in the prior-year period. Gross margin, however, moderated to 76.2%, compared with 77.7% in Q3 FY24, largely attributable to changes in product mix and increased shipments of hardware modules that carry comparatively lower margin profiles.
Increased Operating Expenditure with Strategic Focus: Operating expenses increased to USD 120.4 million from USD 96.8 million a year earlier, primarily reflecting a significant expansion in headcount and higher spending linked to research and development, infrastructure and business scaling initiatives. These increases were partly offset by a reduction in non-cash stock-based compensation during the period.
Return to Operating Profitability: Astera Labs reported a notable transition to operating income of USD 55.4 million, compared to an operating loss of USD 8.9 million in Q3 FY24. This improvement was principally driven by rapid revenue scaling combined with robust gross profitability, which offset higher operating costs.
Substantial Improvement in Net Income: Net income for the quarter totalled USD 91.1 million, contrasting sharply with a net loss of USD 7.6 million in the same quarter of the previous year. This performance reflects the Company’s ability to monetise expanding AI-related infrastructure opportunities and benefit from ongoing demand for high-speed connectivity solutions.
Enhanced Liquidity and Balance Sheet: The Company continued to strengthen its financial position, reporting cash, cash equivalents and marketable securities that support operational expansion and product development. Increased investment in equipment and inventory reflects continued preparation for scaling capacity and addressing customer requirements.
Sustained Strategic Product Momentum: Operationally, Astera Labs continued to advance its Intelligent Connectivity Platform, broadening customer adoption across hyperscalers, system OEMs and AI-centric deployments. Product penetration across PCIe, CXL and Ethernet offerings remains a key driver behind revenue acceleration and ongoing investment initiatives.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Astera Labs, Inc (NASDAQ: ALAB) at the current market price of USD 164.73, as on Dec 09, 2025 at 9:15 am PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ALAB Astera Labs, Inc. |
5.42 3.56% | 157.86 | 69.08 | 68.97 | 30.43 | 14.34 | 28.59 | -392.0149 |
| NVDA NVIDIA Corporation |
-5.445 2.93% | 180.16 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
-12.365 3.73% | 318.75 | 139.68 | 28.99 | 17.14 | 12.73 | 19.13 | 40.92 |
| TSM Taiwan Semiconductor Manufacturing |
-5.68 1.66% | 335.68 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| AMD Advanced Micro Devices Inc |
-2.32 0.94% | 243.95 | 244.65 | 48.78 | 11.64 | 4.72 | 11.51 | 62.93 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on December 9, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
