Astera Labs Inc. ( ALAB ) witnessed an 18.73% surge in its stock value during the pre-market session on Wednesday. This came after the company announced its second-quarter financial results, which exceeded market expectations.

Check out how ALAB stock is trading here. 

What Happened: Astera Labs’ stock price soared to $160.93 in pre-market trading, marking an 18.73% increase from the previous day’s close of $135.54, according to Benzinga Pro data.

The company reported a 20% quarter-over-quarter increase in revenue, reaching a record $191.9 million during the second quarter. This represents a 150% year-over-year rise.

The California-based connectivity provider company is worth $22.35 billion, with about 5.11 million shares of the company traded each day. The stock over the past year has traded between $36.22 and $147.39.

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The company’s CEO, Jitendra Mohan, attributed the strong financial performance to the successful ramping of the PCIe 6 product portfolio into volume production for customized rack-scale AI systems. Additionally, new design wins for the Scorpio Fabric Switches and robust demand for the signal conditioning portfolio were noted.

Why It Matters: The surge in Astera Labs’ stock value follows the company’s announcement of its record second-quarter earnings. The company’s stock price soared after it reported record quarterly revenue, which exceeded market expectations.

Astera ( ALAB ) also expects revenue between $203 million and $210 million and Generally Accepted Accounting Principles (GAAP) diluted earnings per share (EPS) of $0.23 to $0.24 for the upcoming quarter.

With a strong Momentum in the 96th percentile, Benzinga’s Edge Stock Rankings indicate that ALAB has a positive price trend across all time frames. Know how the company’s momentum lines up with other well-known names.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.