Astera Labs shares surge 5.79% after-hours on Q3 earnings beat, $231M revenue, and Stifel/Citi price target upgrades.

Astera Labs surged 5.79% in after-hours trading following the release of its Q3 2025 earnings, which showed a 104% year-over-year revenue jump to $231 million and a net income of $91 million, surpassing analyst expectations. The results highlighted strong demand for its AI connectivity solutions, particularly the Scorpio fabric switches, which exceeded 10% of total revenue in Q2 2025. Additionally, a Stifel Nicolaus analyst raised the price target to $200, while Citigroup upgraded its outlook, citing robust AI demand and new PCIe 6 technology. These developments, coupled with the company’s expanding AI infrastructure partnerships and recent acquisition of aiXscale Photonics, reinforced investor confidence in its growth trajectory despite valuation concerns. The stock’s after-hours rally reflects optimism over its market positioning in the rapidly expanding AI data center sector.