Billionaire Chris Rokos’ 10 Stock Picks with Huge Upside Potential

2. Astera Labs, Inc. (NASDAQ:ALAB)

Rokos Capital Management Stake Value: $33,887,115

Upside Potential as of May 7: 66.24%

Number of Hedge Fund Holders: 51

Astera Labs, Inc. (NASDAQ:ALAB) is another technology company in Chris Rokos’ portfolio. The company designs and manufactures various semiconductor-based connectivity solutions for AI and cloud infrastructure. Key products include PCIe chips, fabric switches, smart retimers, and cable modules.

On May 6, 2025, Astera Labs, Inc. (NASDAQ:ALAB) reported record quarterly earnings for Q1 2025. Revenue was $159.4 million, up 13% sequentially and 144% year-over-year. The GAAP gross margin reached 74.9%, and the non-GAAP operating margin hit 33.7%. According to CEO Jitendra Mohan, the strong performance from the quarter came from “strong demand for PCIe scale-up and Ethernet scale-out connectivity solutions in custom ASIC platforms.” Based on this momentum, the management has provided optimistic guidance for Q2 2025, projecting revenue between $170 million and $175 million. Astera Labs, Inc. (NASDAQ:ALAB) is ramping up production of its PCIe 6 connectivity portfolio to fast-track deployments of modern AI platforms at scale.

Thad Omura, Chief Business Officer, emphasized that their “PCIe 6 solutions have successfully completed qualification with leading AI and cloud server customers.” As such, they are “ramping up to volume production in parallel with their next generation AI platform rollouts.”

Despite the solid financial performance and growth prospects, Barrington analyst Tom O’Malley revised his price target for Astera Labs, Inc. (NASDAQ:ALAB) downward from $135 to $70. However, he maintained an Outperform rating. The analyst cited concerns over China-related risks and consumer uncertainties impacting the company’s outlook and the implications of tariffs and potential trade tensions.