15 Tech Stocks with Best Earnings Growth in 2025

Page 7 of 14

8. Astera Labs Inc. (NASDAQ:ALAB)

Expected EPS Growth Next FY: 50%

Number of Hedge Fund Holders: 51

Astera Labs Inc. (NASDAQ:ALAB) is a semiconductor company that specializes in developing connectivity solutions for AI and cloud infrastructure. Their product offerings include fabric switches, ICs, modules, and boards, along with software designed to manage and optimize connectivity.

On February 10, Astera Labs Inc. (NASDAQ:ALAB) reported impressive Q4 2024 results. Revenue for the quarter increased by 25% sequentially and 179% year-over-year, while full-year 2024 revenue rose by 242%. The company’s advanced chipsets facilitate faster, more reliable data transmission, which is crucial for cloud computing, artificial intelligence, and next-generation 5G networks. As global data consumption continues to grow exponentially, the company is well-positioned for significant growth, as its products are vital for building the necessary infrastructure to support these advancements.

An analyst from Craig-Hallum raised Astera Labs Inc. (NASDAQ:ALAB)’s price target to $125 from $105 and maintained a Buy rating, citing strong results and optimistic guidance. In response to the strong results, CEO Jitendra Mohan emphasized that 2025 is expected to be an even stronger year. He stated:

“We anticipate 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.”

Page 7 of 14