Astera Labs To Outpace Its Peers In Revenue Growth In 2025, Analyst Says

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

Northland Capital Markets analyst Gus Richard maintained the Outperform rating on the stock with a price forecast of $120.

The company reported fourth-quarter results today, with revenue up 179% year-over-year and up 25% quarter-over-quarter.

Astera Labs sees first-quarter revenue in the range of $151 million to $155 million.

The analyst forecasts strong growth for Astera Labs’ revenue, forecasting a 65% increase in calendar year 2025, driven by new products, AI platform diversification, and increasing content in customer racks using merchant GPUs and CSP-built racks with internal ASICs.

The analyst notes that Astera Labs is shipping preproduction volumes of Leo CXL controllers and Scorpio switches, with inventory increasing 77% sequentially to $43 million to meet growing customer demand.

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Per Richard, the market for high-speed connections will grow faster than AI accelerator shipments, with Astera Labs scaling new AI platforms using its own accelerators alongside third-party GPU-based platforms.

The analyst points out that the company’s growth is driven by three key factors: the increased dollar content in next-generation AI accelerator racks with Astera Labs’ products, the ramp-up of custom AI racks using merchant GPUs, and the growth of general computing in data centers through the CLX controller and PCIe 6 products.

Additionally, the company’s serviceable addressable market is estimated to reach $12 billion by 2028.

Price Action: ALAB shares are trading lower by 9.23% to $93.76 at last check Tuesday.

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