Astera Labs (ALAB) Touches Fresh Peak After “Strong Buy” Reco

We recently published 10 Stocks With Eye-Popping Gains; 7 Soar to Fresh Highs. Astera Labs, Inc. (NASDAQ:ALAB) is one of the top performers on Monday.

Astera Labs jumped to a new all-time high on Monday, as investors took path from an investment firm’s bullish rating for the stock.

At intra-day trading, the AI chip company soared to a new 52-week record of $220.69 before trimming gains to finish the day just up by 13.02 percent at $216.10 apiece.

In a market note, Zacks Research gave Astera Labs, Inc. (NASDAQ:ALAB) a “strong buy” recommendation, deeming its technology as “the new industry standard.”

“The technology allows ‘rack-scale’ AI, where multiple servers can act in concert, alleviating data transfer bottlenecks and producing rapid, efficient, and reliable connectivity,” Zacks Research said.

Additionally, the growing system complexities of AI and cloud infrastructure bode well for Astera Labs, Inc. (NASDAQ:ALAB), with its recent earnings performance indicating that it has already emerged as a leader in next-generation data center connectivity.

“In fact, ALAB has beaten Zacks Consensus EPS Estimates for four straight quarters, with a juicy beat margin of 32.2 percent,” the research said.

In the second quarter of the year, Astera Labs, Inc. (NASDAQ:ALAB) swung to a net profit of $51.2 million from a $7.5 million net loss in the same period last year. Revenues expanded by 150 percent to $191.9 million from $76.85 million year-on-year.

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Disclosure: None. This article is originally published at Insider Monkey.