Astera Labs (ALAB) Surges 28.7% as Earnings Soar

We recently published 10 Stocks With Easy 15-30% Upside. Astera Labs, Inc. (NASDAQ:ALAB) is one of the best-performing stocks on Wednesday.

Astera Labs jumped by 28.66 percent on Wednesday to end at $174.39 apiece following an impressive earnings performance in the second quarter of the year.

In its financial statement, Astera Labs, Inc. (NASDAQ:ALAB) said it swung to a net income of $51.2 million from a $7.5 million net loss in the same period last year. Revenues more than doubled to $192 million from $76.8 million year-on-year.

For the six-month period, the company recorded a net income of $83 million, reversing a $100.5 million net loss in the same comparable period. Revenues expanded by 147 percent to $351 million from $142 million year-on-year.

For the third quarter, Astera Labs, Inc. (NASDAQ:ALAB) said it was targeting GAAP revenues of $203 million to $210 million, as well as a gross margin of approximately 75 percent.

“Astera Labs is at the forefront of an AI infrastructure transformation, and we are accelerating our investments to realize our vision of rack-scale connectivity in next-generation AI systems,” said CEO Jitendra Mohan.

Earlier this week, Astera Labs, Inc. (NASDAQ:ALAB) earned a price target of $160 and maintained a “buy” recommendation from Deutsche Bank. The figure marked a 52-percent improvement from its $105 price target previously.