Kim Bolton Astera Labs ALAB-Q BUY Jul 24, 2024

Stock price is too high. Wait for it to fall before buying. 

In the semiconductor space, you could probably look a little further down the food chain. Loves this one. Small. Favourite for a lot of the giants. Works inside the cloud to make chips more efficient. Makes the data in data centres run faster on less energy.

IPO'd only 2 months ago at $38. Don't put a lot of money in, just a small position. Can buy here at $72-73, and in the low $60s. Doesn't think it will go much below that. Will be a star performer in the years ahead. In the AI trend on the infrastructure side.

There's a halo effect to all recent IPOs, and prices are too high. ALAB is up 91% in six months. Wait for this to come down.

Hasn't moved, but he thinks it will. Makes hyperscalers run faster and more efficiently, and most of them own it. 

Still really likes it. Once it went through $38, its IPO level, he got out. Since then, convinced some investors to get back in. Employee options skewed supply/demand on the stock and, hence, its price. Fantastic company, enhances data movement and processing efficiency of hyperscalers.

It's actually snapped back. Got all the way to just below its IPO price, now around $51. The story is so solid because all the hyperscalers love it. Very smart and well managed. Not cheap. Still believes it can get back to the $80 level. A lot of the insider trades have already happened.

People started paying attention to this, because of the hyperscalers use ALAB to make them more efficient in the cloud. He's sold two-thirds of his holding by now. He has a stop loss at $118-120. Don't buy here, but maybe at $100.

Quite the ride. There were so many stock options to sell, that stock went below IPO price. Then stock rocketed up, but got caught up in tariffs. Hold on, but you have to respect the price target.

Trades at a good PE compared to peers, offers strong growth and is well-managed. Shares have fallen to an attractive price.