Needham Doubles Down on Astera Labs (ALAB) Amid Product Momentum

Astera Labs Inc. (NASDAQ:ALAB) is one of the best data center stocks to buy now. On August 6, Needham analyst Quinn Bolton reiterated a Buy rating on Astera Labs (NASDAQ:ALAB) and sharply lifted the price target to $170 from $100, which reflected his growing confidence in the company’s momentum.

Bolton pointed to Astera Labs's (NASDAQ:ALAB) strong execution across its product portfolio as a key driver. The Scorpio, Aries, and Taurus lines have all contributed meaningfully to results, leading to a solid, better-than-expected second quarter of 2025 (results announced on August 5). The engagement metrics for the company’s Scorpio X product have been especially encouraging, with more than ten AI and cloud service providers now working with it, a sign of its technology’s expanding relevance.

The analyst also argued that Scorpio P switches, which are now in volume production and already contributing over 10% of revenue, mark a key development for the business. He also noted steady demand for Taurus Active Electrical Cables, with further growth likely as the industry shifts toward 800G AECs.

Astera Labs (NASDAQ:ALAB) is a semiconductor company that provides connectivity solutions for rack-scale AI infrastructure and data centers.

While we acknowledge the potential of ALAB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.