Astera Labs shares experienced a 30% post-earnings decline following Q4 results, despite reporting a record quarter. The company reported $852.5 million in total revenue and $219.1 million in net income for 2025. The sell-off was attributed to gross margin concerns and higher operating expenses, particularly related to Amazon warrant agreements. Following the earnings report, Bank of America raised its price target to $200 while maintaining a Neutral rating, and JPMorgan adjusted its target to $205 with an Overweight rating. The company announced a new Israel R&D center and confirmed a CFO transition. Over the past 30 days, shares declined 23.56%, though the one-year total shareholder return stands at 53.23%. The stock currently trades at $129.68.
Read full analysisAstera Labs shares experienced a 30% post-earnings decline following Q4 results, despite reporting a record quarter. The company reported $852.5 million in total revenue and $219.1 million in net income for 2025. The sell-off was attributed to gross margin concerns and higher operating expenses, particularly related to Amazon warrant agreements. Following the earnings report, Bank of America raised its price target to $200 while maintaining a Neutral rating, and JPMorgan adjusted its target to $205 with an Overweight rating. The company announced a new Israel R&D center and confirmed a CFO transition. Over the past 30 days, shares declined 23.56%, though the one-year total shareholder return stands at 53.23%. The stock currently trades at $129.68.
Astera Labs designs semiconductor connectivity solutions for AI data center infrastructure, specializing in intelligent fabric switches and retimers that enable high-speed data transfer between processors. The company reported record Q4 revenue of $271 million on February 10 but triggered a 30%+ selloff on an Amazon warrant deal, CFO departure, and margin concerns — a repricing that continues to define its daily trading pattern.