Evercore ISI is pounding the table on Astera Labs after the semiconductor company’s blowout quarterly results. Analyst Mark Lipacis reiterated his outperform rating on Astera, calling the stock an “AI pure play in [an] accelerating capex market.” He lifted his price target by $109 to $215, which suggests the stock can jump 58.6% from its latest close. Astera shares popped more than 34% on Wednesday, reaching an all-time high on the back of the company’s strong second-quarter results. The company’s third-quarter earnings and revenue guidance also beat analyst expectations. ALAB 1Y mountain Astera Labs performance over the past year. Lipacis is bullish on Astera’s AI infrastructure product growth. “We are Buyers of ALAB following its ‘Big Beat, Big Raise quarter as we think it is hitting its AI product cycle stride on three dimensions,” Lipacis wrote in a Wednesday note to clients. “Against the backdrop of accelerating Cloud CapEx (we model 72% growth in 2025 from 56% in 2024), we think ALAB is positioned to surprise on the upside given its multi-pronged product cycle over the next 1-to-2 years.” For the so-called first dimension, the analyst cited growth in Astera’s Scorpio P Series, which saw stronger-than-expected ramp in the second quarter. He noted that management announced multiple new designs for the product and said it should ramp in 2026. The Scorpio P Series is a fabric switch purpose-built for AI servers that integrate with Nvidia’s Blackwell-based MGX platform. Additionally, Lipacis highlighted Astera Lab’s upcoming X-Series fabric switch product line that he said should increase the company’s “content per accelerator,” or how much revenue it generates for each AI accelerator. He added that customer interest in the X Series is already “robust” with at least 10 unique customers in the pipeline. AI infrastructure has been an increasingly hot investment spot. Astera Labs remains favored among Wall Street analysts, with 14 out of 16 covering the name rating the stock a strong buy or buy, according to LSEG. Their consensus price target suggests shares could be overvalued and drop about 20%, however. Shares of Astera are up 97% over the past month and nearly 35% year to date.
