Astera Labs (ALAB) Stock Is Up 23% This Month: What's Going On?

Astera Labs Inc ALAB shares are up 23.4% to $89.54 in November following the company's impressive third-quarter earnings beat Wall Street expectations, reinforcing its role as a critical player in AI infrastructure.

What To Know: Astera reported earnings of 23 cents per share, exceeding the estimated 17 cents, alongside revenue of $113.1 million, up 206% year-over-year and well above analyst forecasts of $97.4 million.

CEO Jitendra Mohan highlighted that the company achieved its fifth consecutive quarter of record-breaking revenue, with sales rising 47% from the previous quarter, driven by new growth in AI connectivity solutions.

Astera's latest product, the Scorpio Smart Fabric Switch, is central to its strategy. These switches are designed to enhance data transfer speeds between GPUs, CPUs and storage devices, addressing critical needs in AI data centers where performance demands are skyrocketing.

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What Else: The company's strong performance and promising product pipeline prompted multiple analysts to raise their price targets.

JPMorgan increased its target to $110 per share, while Deutsche Bank, Barclays and others made upward revisions.

Astera's revenue forecast for the fourth quarter of $126–$130 million, alongside expected earnings of 25 cents to 26 cents per share, has added momentum to investor enthusiasm.

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How To Buy ALAB Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Astera Labs’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, ALAB has a 52-week high of $100.09 and a 52-week low of $36.22.