Why Analysts See Big Upside Ahead for Astera Labs (ALAB)

Astera Labs, Inc. (NASDAQ:ALAB) is one of the  AI Stocks Analysts Are Backing Right Now. On September 2, Deutsche Bank analyst Ross Seymore raised the price target on the stock to $200.00 (from $160.00) while maintaining a Buy rating. The firm said that Astera Labs is optimistic on its positioning in artificial intelligence.

As per analyst Ross Seymore, Astera Labs, Inc. took the opportunity at a recent Duetche Bank conference to highlight that the impressive capex from hyperscalers is continuing and there is also a diversification of its customer base and product offerings.

“The continued expansion of AI cluster sizes has increased the need for seamless connectivity and real-time diagnostics within data centers to focus on limiting processor idle time and increasing efficiency,” Seymore added.

The company also discussed how the increasing focus on total cost of ownership provides an “intriguing” opportunity due to a greater mix of custom silicon among hyperscalers.

“The culmination of these impacts has led to an impressive content increase from the inception of the company, going from ~$100 per accelerator on the back of its retimer business to now multiple thousands of dollars as its Scorpio series ramps.”

Astera Labs, Inc. (NASDAQ:ALAB) is engaged in the design, manufacture, and selling of semiconductor-based connectivity solutions for cloud and AI infrastructure.

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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