Astera Labs Inc. (NASDAQ: ALAB) shares climbed Monday after Northland Capital Markets upgraded the semiconductor company from Market Perform to Outperform, setting a $350 price target. The upgrade gave investors a fresh reason to buy, and the stock outpaced the broader tech sector. The Nasdaq gained 0.25%, the S&P 500 fell 0.10%, and 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. Astera Labs 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 company also issued a strong third-quarter outlook. It expects adjusted earnings of $1.16 to $1.21 per share, compared with the Street estimate of 81 cents. Revenue is forecast at $540 million to $560 million, while analysts had expected $416.53 million.

Technical Analysis

ALAB remains in a longer-term uptrend. The stock trades 53.2% above its 200-day simple moving average (SMA) 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 (RSI) stands at 50.60, signaling neutral momentum. The moving-average picture is mixed: the 20-day SMA is below the 50-day SMA, pointing to near-term pressure, but 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 market data.