Astera Labs Inc. (NASDAQ:ALAB) stock climbed Monday after Northland Capital Markets upgraded the semiconductor company from Market Perform to Outperform and set a $350 price forecast.
The upgrade gave investors a fresh reason to buy the stock. Astera Labs also outpaced the broader technology sector. The Nasdaq gained 0.25%, while the S&P 500 fell 0.10%. The technology sector rose 0.41%.
Strong Second-Quarter Results
The upgrade follows the company’s better-than-expected second-quarter results on Aug. 5.
It reported adjusted earnings of 80 cents per share, beating the Street estimate of 69 cents. Revenue reached $392.4 million, topping the $360.72 million consensus estimate.
Third-Quarter Outlook Tops Estimates
The semiconductor company also issued a strong third-quarter outlook. It expects adjusted earnings of $1.16 to $1.21 per share. That compares with the Street estimate of 81 cents.
Astera Labs forecast revenue of $540 million to $560 million. Analysts had expected $416.53 million.
Astera Labs Technical Analysis
ALAB remains in a longer-term uptrend. The stock trades 53.2% above its 200-day simple moving average of $216.62 and 17.9% above its 100-day SMA of $281.56.
Shares are also 6% above the 20-day SMA of $313.17. However, the stock remains 6.4% below its 50-day SMA of $354.51. A move above that level could strengthen the intermediate trend.
The relative strength index stands at 50.60, signaling neutral momentum.
The moving-average picture remains mixed. The 20-day SMA is below the 50-day SMA, pointing to near-term pressure. However, the 50-day SMA remains above the 200-day SMA after a golden cross in May, supporting the longer-term bullish trend.
Immediate resistance sits near $342.50, while support is around $289.50.
ALAB Stock Price Activity: Astera Labs shares were up 5.34% at $338.78 at the time of publication Monday, according to Benzinga Pro data.
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