Astera Labs falls 20% amid tech selloff (ALAB:NASDAQ)

Astera Labs' stock fell 17.5% to $184.10 after TD Cowen cut its price target to $225, maintaining a Hold rating. The company reported record Q3 2026 revenue of $584.9M, up 154% YoY. Other analysts also adjusted targets, with mixed ratings. Broader sector selloff, regulatory concerns, and weak chip earnings contributed to the decline.

BMO Capital initiated coverage on Astera Labs (ALAB) with an Outperform rating and $375 price target, citing its role in AI networking. ALAB reported Q3 revenue of $584.9M, up 153.6% YoY, and guided Q4 revenue to $730M-$750M. Despite growth, shares fell 6% premarket and 37% over a month, reflecting valuation concerns at 36x forward earnings.

Astera Labs (ALAB) fell 12% despite guiding Q4 revenue to $730M-$750M, above estimates. Dell (DELL) and Applied Materials (AMAT) also dropped due to broader chip sector declines tied to phone and memory costs. Astera's Q3 revenue rose 154% to $584.9M, its fourth consecutive beat.

BMO Capital Markets initiated coverage of Astera Labs (ALAB) with an outperform rating and a $375 price target, suggesting 68% upside. The company is seen as a key player in AI networking, addressing infrastructure challenges. Shares have fallen 30% in three months amid semiconductor sector declines, but analysts remain bullish on its long-term prospects in AI and cloud infrastructure.

Astera Labs (ALAB) reported Q3 2026 revenue of $584.9M, up 154% YoY and 49% sequentially, with net income of $182.9M. Analysts revised price targets, with Morgan Stanley raising its target to $389, while others cut theirs. The average target fell to $365.90, implying 57% upside. ALAB also announced product sampling plans and a board resignation.

Astera Labs (ALAB) shares dropped 8% premarket Nov. 4 despite Q3 results beating expectations and a Q4 outlook exceeding consensus. Analysts' views diverged, with Morgan Stanley confident in growth and Bank of America maintaining a Neutral rating due to valuation concerns.