Astera Labs Inc. (NASDAQ:ALAB) is one of the best performing new tech stocks to invest in. On October 3, BofA initiated coverage of Astera Labs with a Neutral rating and $230 price target. BofA believes that Astera Labs is positioned to benefit from the AI scaling market with its PCIe and UALink retimers and switches. But at the same time, the firm also acknowledges that some of the company’s growth is threatened by competition.
In Q2 2025, Astera Labs achieved record revenue of $191.9 million, which marked a 20% sequential increase and a 150% year-over-year increase. The quarter’s non-GAAP diluted EPS was $0.44, and the company generated a record $135.4 million in cash flow from operating activities, concluding the quarter with $1.07 billion in cash and equivalents.
A key contributor to the quarter’s success was the ramp into volume production of the Scorpio P-Series switches, supporting PCIe 6 scale-out applications for customized rack-scale AI systems. The company views itself as well-positioned to capitalize on the AI Infrastructure 2.0 transition, which is projected to add a $5 billion market opportunity by 2030. For Q3, Astera Labs forecasts revenue to be between $203 and $210 million, which is a sequential increase of 6% to 9%.
Astera Labs Inc. (NASDAQ:ALAB) designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure.
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Disclosure: None. This article is originally published at Insider Monkey.
