Astera Labs Inc. (NASDAQ:ALAB) stock surged Monday as investors bought the dip following its post-earnings pullback, supported by a broader technology rally and renewed interest in artificial intelligence infrastructure.

The Nasdaq gained 3.26%, while the S&P 500 rose 2.31%. The Technology sector advanced 3.43%.

Strong Earnings And Upbeat Forecast Support Sentiment

The rally follows Astera Labs’ third-quarter earnings report last Tuesday, when the company beat Wall Street expectations but saw its shares decline in after-hours trading.

Third-quarter revenue surged 154% year over year to $584.90 million, exceeding analysts’ estimate of $550.80 million.

Adjusted earnings of $1.32 per share also topped the $1.19 consensus estimate.

Growth was driven by the company’s Scorpio connectivity products, which recently entered high-volume production.

Astera Labs forecast fourth-quarter revenue of $730 million to $750 million, well above analysts’ estimate of $655.81 million.

The company also projected adjusted earnings of $1.62 to $1.66 per share, exceeding the $1.42 consensus estimate.

CEO Jitendra Mohan highlighted accelerating design wins and new products aimed at expanding the company’s presence in AI infrastructure.

Technical Indicators Signal Caution

Despite Monday’s rally, Astera Labs remains below several key moving averages.

The stock trades 18.1% below its 20-day simple moving average of $262.76 and 28% below its 50-day average of $298.99.

It also remains 16% below its 200-day average of $256.29, signaling continued pressure on the broader trend.

Meanwhile, the moving average convergence divergence indicator remains below its signal line, suggesting weak underlying momentum.

Traders are watching resistance near $231.50 and support around $189.50.

Astera Labs carries a consensus Buy rating and an average analyst price forecast of $352.54.

ALAB Price Action

Astera Labs shares were up 13.70% at $216.84 at the time of publication Monday, according to market data.