On May 26, Astera Labs rose 3.17% overnight, trading at $317.5/share, with trading volume of approximately $1.088 million. The stock continued its multi-day rally that began following the company's blowout first-quarter earnings report and aggressive second-quarter guidance.

Astera Labs reported Q1 revenue of $308.4 million, up 93% year-over-year and 14% sequentially, driven by strong demand for its PCIe 6 product portfolio. Non-GAAP net income reached $110.1 million, with gross margins exceeding 76%. The company guided Q2 revenue to $355-365 million, with non-GAAP EPS of $0.68-$0.70, at least 16% above Wall Street consensus, underscoring its position as a core connectivity supplier for hyperscale AI infrastructure.

Management noted its chips, optics, and software are now integrated into nearly 90% of global AI compute servers, while its total addressable market in Scorpio and UALink/PCIe exceeds $20 billion. RBC maintained its Outperform rating and raised its target price, citing anticipated benefits from Amazon Trainium3 deployment. Analysts flagged the 72x forward P/E and potential AI capex deceleration as key risks.

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