From Nasdaq: 2025-05-02 15:00:00

Astera Labs (ALAB) is set to report first-quarter 2025 results on May 6, expecting revenues between $151 million and $155 million, with non-GAAP earnings between 28-29 cents per share. The company’s stock has underperformed the sector and industry, down 45.1% YTD. ALAB’s expanding portfolio aims to compete with industry giants like Broadcom (AVGO) in the AI and cloud markets.

Factors like demand for AI servers and data center infrastructure are expected to drive Astera Labs’ Q1 performance. Revenue growth from key product families like Aries, Taurus, and Leo, along with the Scorpio Smart Fabric Switch expansion, are likely to positively impact the company’s financials. ALAB’s collaborations with top chipmakers like NVIDIA and AMD are also driving growth.

Despite a strong product portfolio, ALAB faces increasing competition in the AI and cloud markets, leading to concerns about financial performance. The stock is currently overvalued, trading at 15.36X forward 12-month Price/Sales. With a Zacks Rank #3 (Hold), investors may want to wait for a better entry point to accumulate ALAB stock.

Looking ahead, Astera Labs’ expanding portfolio, collaborations with top chipmakers, and strong product offerings position it well in the competitive AI and cloud markets. However, investors should consider the competitive landscape and valuation concerns before making investment decisions.



Read more at Nasdaq: ALAB Set to Report Q1 Earnings: Buy, Sell or Hold the Stock?