Important points
Astera Labs (ALAB) stock rose about 30% on Tuesday morning after the Nvidia (NVDA) supplier reported strong third-quarter results on Monday on demand for artificial intelligence (AI) products. I am doing it.
The company, which makes chip-based connectivity products that improve AI efficiency, had quarterly revenue of $113.1 million, up 47% sequentially and 206% year-over-year, but had a net loss of $7.6 million. . 5 cents per share.
The company also expects fourth-quarter sales of $126 million to $130 million and earnings per share of 4 cents to 6 cents.
Astera customers include AMD, Intel
Astera, which went public in March, said in its initial public offering (IPO) filing that its customers include several major companies in the AI space. In addition to Nvidia, they include Advanced Micro Devices (AMD) and Intel (INTC).
In a note published Monday, Jefferies analysts said the company “appears to be firing on all cylinders heading into 2025.”
“We really like this report, with its strengths across a mix of in-demand products from both NVDA and multiple AI ASIC platforms (likely AMZN and GOOG),” the broker said. Jefferies gave the stock a buy rating and a price target of $69.65.
Application-specific integrated circuits (ASICs) are custom-designed chips built for a specific use or application.
Astera’s stock price has increased about 71% since the beginning of the year.
