BN · rank #8 · 2026-10-19
ALAB
NASDAQ · $49.59B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.70 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +55.9% |
| Forward net margin Consensus forward net margin. | +31.3% |
| Net margin TTM Trailing twelve month net margin. | +30.7% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.6% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | — |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.15× |
| Analyst upside Spread between the consensus 12m target and the current price. | +37.1% |
| Last EPS surprise Most recent reported EPS versus consensus. | +17% |
| Market cap (USD) | $49.59B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Astera Labs (ALAB) supplies high-speed connectivity silicon and software for AI infrastructure, spanning signal conditioning, fabric switching, memory controllers, Ethernet, and rack-scale interconnects.
Rationale
The signal fits a bottleneck-solver because AI buildouts still need Astera’s specialized PCIe/optical/switching products, and the model’s strong growth, margins, low leverage, and analyst upside align with record revenue and expanding Scorpio/Leo/Aries ramps.
Material risks
- 1Revenue is highly concentrated, with four direct customers driving 82% of Q2 sales, so a hyperscaler spending pause, supplier reallocation, or lost design win could quickly break the thesis.
- 2Broadcom, Marvell, Credo, and customer-developed or NVIDIA-proprietary interconnects could commoditize or displace Astera’s connectivity stack, especially if in-house solutions gain traction.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.