Astera Labs Stock Soars on Northland Upgrade and Amazon's $134M Investment
Astera Labs (ALAB) stock surged 5% in pre-market hours following Northland's decision to upgrade the AI connectivity semiconductor manufacturer to Outperform from Market Perform, with a $350 price target. The rating enhancement is based on anticipated positive earnings estimate adjustments and an AI infrastructure investment cycle that Northland now considers more sustainable than its earlier projections.
Astera delivered record quarterly revenue of $392.4 million in Q2, representing a 104% year-over-year increase and surpassing the ~$360 million consensus estimate. Adjusted EPS reached $0.80, exceeding analyst projections by $0.11.
Amazon disclosed the purchase of 277,777 shares valued at approximately $134 million during the second quarter, now representing its 4th largest portfolio position. The company's executives projected approximately 40% sequential revenue expansion for Q3.