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Astera Labs (ALAB), a fabless semiconductor company known for AI connectivity solutions, has emerged as a leader in next-generation data center technology. With a Zacks Rank of #1 (Strong Buy), ALAB reports a significant earnings beat margin of 32.2% over the past four quarters.
Large technology firms including Amazon, Microsoft, Meta Platforms, and Alphabet are expected to spend around $400 billion on AI capital expenditures in 2025, with demand for ALAB’s technology, which facilitates “rack-scale” AI, anticipated to continue growing substantially. Analysts project a remarkable 88.10% growth in ALAB’s full-year EPS for 2025 and 24.14% for 2026.
ALAB’s stock price rose approximately 29% in early August 2025 following strong earnings, indicating robust market demand and increased trading volume of 220%.
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