Citi Lifts Astera Labs (ALAB) PT to $275 on Strong AI Exposure

Astera Labs Inc. (NASDAQ:ALAB) is one of the best new stocks to buy right now. On September 17, Citi raised the price target on Astera Labs to $275 from $160, while keeping a Buy rating. Citi upgraded its estimates to reflect Astera’s AI exposure and a better-than-expected ramp of Scorpio X, which is the company’s new AI product. The firm sees strong earnings growth for Astera in the next 3 years.

Astera announced its Q2 2025 earnings results earlier in August and highlighted record revenue growth driven by its position in the evolving AI infrastructure market. The company reported revenue of $191.9 million, which was an increase of 20% from the prior quarter and 150% year-over-year.

The quarter was fueled by the ramp into volume production of the Scorpio P-Series switches, which support PCIe 6 scale-out applications. This strengthens Astera Labs’ relationships, such as key collaborations with NVIDIA and Alchip Technologies. This then positions the company to capitalize on the AI Infrastructure 2.0 transition, which is an opportunity estimated to be worth an additional $5 billion by 2030.

Astera Labs Inc. (NASDAQ:ALAB) designs, manufactures, and sells 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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Disclosure: None. This article is originally published at Insider Monkey.