Analyzing Astera Lab Stock: Buy, Sell, or Hold at 38.80X PS?

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Astera Labs, Inc. (ALAB) reported second-quarter revenues of $191.9 million, reflecting a 20% sequential and a 150% year-over-year increase. Despite a staggering Price/Sales ratio of 38.80X, compared to the broader sector’s 6.73X, the company’s shares have surged 63.2% year-to-date, outperforming the Zacks Computer & Technology sector increase of 15.4%.

In the second quarter of 2025, ALAB’s Scorpio P-Series switches became the fastest-growing product in its history, contributing over 10% of total revenues. The company expects third-quarter revenues between $203 million and $210 million and earnings between 38 cents and 39 cents per share, indicating a year-over-year revenue increase of 82.80%.

Astera Labs benefits from collaborations with major chipmakers like NVIDIA and AMD while expanding its product portfolio. The demand for AI solutions is expected to drive growth opportunities, with the UA Link solutions projected to create a multibillion-dollar market opportunity by 2029.

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