This Nvidia rival is up over 20% today, time to buy?

Core Insights - Astera Labs (NASDAQ: ALAB) stock surged 20.18% in premarket trading, reaching $162.89 after reporting strong Q2 earnings that exceeded market expectations [1][3]. Financial Performance - The company reported record quarterly revenue of $191.9 million for Q2 2025, reflecting a 150% year-over-year increase and a 20% quarter-over-quarter rise [3]. - Non-GAAP diluted earnings per share were $0.44, significantly above the forecasted $0.11, with net income of $51.2 million compared to a net loss of $7.5 million in the same period last year [3][4]. Growth Drivers - CEO Jitendra Mohan attributed the strong performance to the ramping of the PCIe 6 product portfolio for customized AI systems, new design wins for Scorpio Fabric Switches, and robust demand for the signal conditioning portfolio [4]. - Evercore ISI highlighted three key growth drivers: the Scorpio P Series ramp exceeding expectations, the potential increase in content per accelerator with the X Series addition, and strong customer interest across various production stages [5][6]. Market Outlook - Evercore ISI raised its price target for Astera Labs to $215 from $104, indicating confidence in the company's performance within the AI product cycle [5]. - The firm projects a 72% growth in cloud capital expenditure in 2025, positioning Astera Labs to exceed expectations over the next one to two years [7]. - Analyst data from TipRanks shows Astera Labs as a Strong Buy with 12 Buy ratings, 2 Hold ratings, and no Sell ratings [7]. Price Targets - The average 12-month price target for Astera Labs is $116.58, indicating a -28.44% downside from the current price, with targets ranging from $75.00 to $200.00 [8].