Astera Labs Inc. (NASDAQ:ALAB) shares are trading higher Tuesday after the company posted strong third-quarter financial results. Here’s what you need to know.

What To Know: Astera Labs reported earnings of 23 cents per share, surpassing estimates of 17 cents per share. The company reported quarterly revenue of $113.1 million, beating analyst estimates of $97.4 million, per Benzinga Pro. Astera’s quarterly revenue was up 206% year-over-year.

“Astera Labs delivered strong Q3 results, setting our fifth consecutive quarterly revenue record and grew 47% versus the previous quarter,” said Jitendra Mohan, CEO of Astera Labs.

“Our business has now entered a new growth phase with multiple product families ramping across AI platforms based upon both third-party GPUs and internally developed AI accelerators.”

Astera highlighted the recent introduction of its Scorpio Smart Fabric Switches. The switches are designed to improve connectivity and performance in AI systems and offer specific solutions for different needs in AI infrastructure, such as fast connections between GPUs, CPUs and storage devices.

“With expanding product portfolio including the new Scorpio Fabric Switches, we are cementing our position as a critical part of AI connectivity infrastructure, delivering increased value to our hyperscaler customers, and unlocking additional multi-year growth trajectories for Astera,” Mohan added.

Astera Labs expects fourth-quarter revenue to be between $126 million and $130 million. The company sees adjusted earnings per share in the range of 25 cents to 26 cents.

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Analyst Changes: A number of analysts raised price targets following the print, which appears to be adding to the upward momentum in shares on Tuesday.

• Barclays analyst Tom O’Malley maintained an Overweight and raised the price target from $70 to $87.

• Craig-Hallum analyst Richard Shannon maintained a Buy and raised the price target from $75 to $105.

• Deutsche Bank analyst Ross Seymore maintained a Buy and raised the price target from $60 to $100.

• JPMorgan analyst Harlan Sur maintained an Overweight and raised the price target from $70 to $110.

• Stifel analyst Tore Svanberg maintained a Buy and raised the price target from $80 to $100.

• Morgan Stanley analyst Joseph Moore maintained an Overweight and raised the price target from $74 to $94.

ALAB Price Action: Astera Labs shares were up 37.5% at $95.73 at the time of writing, according to Benzinga Pro.

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