Astera Labs, Inc. (NASDAQ:ALAB) shares are trading higher Wednesday after the company reported better-than-expected first-quarter financial results and issued second-quarter guidance above estimates on Tuesday after the market closed.

• Astera Labs shares are powering higher. Why are ALAB shares rallying?

Q1 Highlights

Astera reported adjusted earnings per share of 61 cents, beating the consensus estimate of 54 cents. In addition, it reported revenue of $308.36 million, beating the consensus estimate of $292.22 million and representing a 93% year-over-year increase.

"Adoption of our Intelligent Connectivity Platform continues to expand with the launch and initial shipments of our new Scorpio X-Series 320-lane AI scale-up fabric switch, new design engagements for custom and optical solutions, and growing market share for our broad portfolio of 32 to 320 lane PCIe switches and Smart Cable Modules," said Jitendra Mohan, CEO of Astera Labs.

"We believe the opportunity ahead is significant, and we are investing to be a leader for rack-scale AI technologies in close partnership with our customers."

Alongside its earnings report, Astera Labs unveiled the Scorpio X-Series 320 Lane Smart Fabric Switch, which is built to enhance token economics and enable low-latency connectivity for large-scale-up clusters. The company said shipments of the new switch started on Tuesday.

Guidance

Astera anticipates second-quarter adjusted earnings per share between 68 cents and 70 cents, versus the consensus estimate of 55 cents. Furthermore, it expects revenue of $355.00 million to $365.00 million, versus the consensus estimate of $310.55 million.

ALAB Technical Picture Remains Bullish

ALAB is still in a powerful longer-term uptrend, up 202.26% over the past 12 months, and it's trading well above its major moving averages—about 27.5% above the 20-day SMA ($181.08) and 60.4% above the 50-day SMA ($143.89). When a stock is stretched that far above trend, it often means momentum is strong, but it also raises the odds of sharper pullbacks if buyers pause.

RSI is the cleanest momentum read right now: at 71.42, it's in overbought territory, which signals the move is getting stretched rather than "broken." That lines up with the note that RSI pushed into overbought territory in May—useful context because extended RSI can persist in strong trends, but it tends to make entries more sensitive to any cooling in the broader tape.

One nuance: despite the current strength, the stock is still carrying a "death cross" from March (the 50-day SMA below the 200-day SMA), which is a longer-term caution flag. In practice, the more immediate message is that price has decisively reclaimed and held above the 200-day SMA ($163.92), so the trend is being driven by price strength more than the lagging crossover.

• Key Resistance: $232.00 — a nearby pivot/round-number area where breakouts can hesitate
• Key Support: $186.00 — a prior pivot zone that also sits closer to the rising 20-day trend area

Analyst Consensus & Recent Actions

The stock carries a Buy rating with an average price target of $216.44. Recent analyst moves include:

• Stifel: Buy (Raises Target to $260.00) (May 6)
• Needham: Buy (Raises Target to $260.00) (May 6)

Astera Shares Rise

ALAB Price Action: At the time of publication, Astera shares are trading 6.87% higher at $230.50, according to data from Benzinga Pro.