ALAB
Astera Labs, Inc.

Astera Labs, Inc.ALAB

Technology · Semiconductors
190.71USD
+6.26%
Nov 08, 2026
ALAB overview ready
Rack-scale AI connectivity semiconductor solutions for hyperscale cloud
Astera Labs is a rack-scale AI connectivity semiconductor supplier.
Primary theme is lagging
Connectivity Semiconductors is lagging (-38.0pp vs SPY over 21 sessions; 0 of 5 members ahead of SPY).
Price trend is broken
Longer-term context reads new trend, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Unremarkable fundamentals
Primary risk
Dependence on hyperscale cloud and AI infrastructure spending.
Market Nov 6Filing Sep 30Price action Nov 7Research Sep 28

Conviction Level

PriceAction1.4BusinessPerformance7.0BusinessQuality5.9Valuation2.8ThemeMomentum1.0Improving — Revenue growth has accelerated across 4 consecutive quarters, rising from +92% to +154% year over year. Diluted EPS is up 98% year over year ($0.99), but growth has slowed from +186%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−38.0pp
Theme return
−43.0%
Beating SPY
0 of 5
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads new trend, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$33.3B
Avg Volume (60D)
4.5M
60 sessions
Revenue Growth YoY
+115.1%
FY2025 vs FY2024
Gross Margin
+73.9%
Trailing twelve months
Operating Margin
+25.5%
Trailing twelve months
Free Cash Flow Yield
+1.0%
Distance from 200DMA
-25.5%
P/E
72.3x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue growth has accelerated across 4 consecutive quarters, rising from +92% to +154% year over year. Diluted EPS is up 98% year over year ($0.99), but growth has slowed from +186%.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthAccelerating
+154%
$585M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +92%
  2. +93%
  3. +105%
  4. +154%
Earnings growthSlowing
+98%
Diluted EPS $0.99 vs $0.50 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +144%
  3. +186%
  4. +98%
Operating marginExpanding
30.6%
+6.6 pp YoY · gross margin 72.3% (-4.0 pp)

Business Quality

5.9 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

The available comparisons disagreed; the peers comparison is the more reliable method for this business and the others are published as dissent.
Astera Labs, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at a 1.0% free-cash-flow yield, which requires sustained delivery to be justified.

Company Research

Thesis
Astera Labs is a rack-scale AI connectivity semiconductor supplier. Its portfolio includes PCIe/CXL retimers and cable modules, CXL memory controllers, PCIe fabric switches, Ethernet signal-conditioning products, custom connectivity solutions, and the COSMOS management software stack.
Opportunity
Moderate opportunity
AI-cluster deployment requires high-bandwidth, low-latency scale-up and scale-out connectivity, including fabric switches, signal conditioning, memory connectivity, Ethernet and optical interconnects.
Key risk
Dependence on hyperscale cloud and AI infrastructure spending.

Economic classification

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Business & Markets

Technology · Semiconductors
What they do

Astera Labs designs, manufactures, and sells semiconductor-based connectivity solutions focused on cloud and AI infrastructure, integrating hardware and software to optimize large-scale data center connectivity.

How it earns

The company generates revenue primarily through transactional sales of semiconductor products and software licenses.

Products & services
PCIe/CXL retimers and cable modules
CXL memory controllers
PCIe fabric switches
Ethernet signal-conditioning products
COSMOS connectivity management software
Customers & end markets
Cloud service providers
Hyperscale AI infrastructure operators
Market position

Niche supplier specializing in rack-scale AI connectivity semiconductor solutions.

Demand drivers
Medium cyclicality

Demand tied to capital expenditure cycles in cloud and AI infrastructure but supported by strong growth in AI compute deployment.