Astera Labs Inc. (NASDAQ:ALAB) stock traded higher Tuesday, rebounding from the prior session’s pullback after TD Cowen raised its price forecast for the stock while maintaining a Hold rating. The gain came as the broader market advanced, with the Nasdaq up 1.36% and the S&P 500 adding 0.39%.

On Tuesday, TD Cowen maintained a Hold rating on Astera Labs but raised its price forecast for the stock to $425. The update follows a period of significant growth for the fabless chip company, with the stock remaining up 120.51% year to date.

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Monday Sector Weakness Reverses

The Tuesday rebound follows a down session on Monday, where chip stocks faced pressure. Fabless semiconductor companies traded lower due to volatility initiated in South Korea after declines in Samsung Electronics and SK Hynix dragged down the KOSPI index and U.S. peers.

Market weakness also stemmed from rising energy costs following military exchanges between the U.S. and Iran, alongside comments from President Donald Trump.

Monday’s decline was also driven by profit-taking, index rebalancing adjustments following the company’s June 22 inclusion in the Nasdaq-100, and insider liquidations.

SEC filings detailed that Board Chairman Manuel Alba and Director Stefan Dyckerhoff executed multi-million dollar automated divestments under Rule 10b5-1 trading plans.

Astera Labs Upcoming Q2 Earnings

Traders are now turning attention toward the company’s upcoming financial results. Astera Labs is scheduled to report its second-quarter earnings on August 4. Analysts estimate earnings per share (EPS) of 64 cents and quarterly revenue of $360.21 million.

Technical Analysis

ALAB is in a mixed near-term setup: it’s trading 7.3% below its 20-day SMA ($406.14), but still 13.4% above its 50-day SMA ($332.10), which suggests a pullback inside a still-bullish intermediate trend. Longer-term trend structure remains firmly constructive with the stock 59.7% above the 100-day SMA ($235.71) and 87% above the 200-day SMA ($201.28).

RSI is 49.21, which points to neutral momentum after the stock cooled from an overbought reading in June.

Astera Labs Price Action

ALAB Stock Price Activity: Astera Labs shares were up 2.91% at $372.58 at the time of publication on Tuesday, according to Benzinga Pro data.

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