Stifel reiterates Astera Labs stock rating with $460 target

Stifel has reaffirmed its Buy rating and $460 price target for Astera Labs (NASDAQ:ALAB) stock following a meeting with the company's executives at the 2026 OCP Global Summit in San Jose. The target suggests a 52% upside from the current price of $301.98. Astera Labs, led by Nick Aberle, SVP Finance and IR, and Leslie Green, IR, expects PCIe 7 to add $200 to $300 of incremental content per XPU starting in the second half of 2027.

The company's Aries 7 TIAs and drivers are designed for NPO, which is expected to generate revenue in late CY27. Astera Labs has reported strong second-quarter 2026 results, with revenue increasing 104% year-over-year to $392.4 million and adjusted earnings per share reaching $0.80, surpassing analysts' expectations. The stock is trading at a high revenue valuation multiple, and InvestingPro data indicates it is currently overvalued relative to its Fair Value.

Despite this, analysts anticipate continued sales growth for Astera Labs, which targets underserved sovereign, enterprise, and neocloud customers and carries over $100,000 of Astera content per rack.