Astera Labs, Inc. saw its stock price surge 5.22% during intraday trading on Thursday, as the broader semiconductor sector continues its record-breaking rally.

The frenzied rally in chip stocks has seen the PHLX Semiconductor Index post its best start to a year on record, climbing 82% so far in 2026. Companies in the index have added around $5.7 trillion in market capitalization, driven by surging demand across all categories of chips, from basic CPUs to AI accelerators and memory chips. The AI boom, particularly the rise of AI agents, has resurrected demand for the building blocks of artificial intelligence.

Despite the significant run-up in prices, some analysts note that semiconductor stocks may still have room to run, as price-to-earnings ratios have come down from their peaks due to companies boosting profits. The sector's performance is underpinned by substantial profits, a key distinction from previous technology bubbles.