Stifel Raises Price Target for Astera Labs (ALAB), Keeps Buy Rating

Astera Labs, Inc. (NASDAQ:ALAB) is one of the 10 Best American AI Stocks to Buy According to Analysts. On October 17, Stifel increased its price target on Astera Labs, Inc. (NASDAQ:ALAB) from $174 to $185 while keeping a Buy rating.

Stifel expects Astera Labs, Inc. (NASDAQ:ALAB) to give a higher outlook for the December quarter and set another record in quarterly revenues.

The research firm believes that Astera Labs, Inc.’s (NASDAQ:ALAB) product mix will shift significantly for the calendar year 2025. The Aries PCIe retimers, which made up more than 90% of revenue in 2024, will account for about 72% to 77% of the company’s total revenue in 2025. Stifel expects new product lines such as the Scorpio Smart Switch Fabric and the Taurus Ethernet smart cable modules to make up more than 10% of the company’s revenue.

The firm expects Leo CXL smart controllers to account for less than 5% of Astera Labs, Inc.’s (NASDAQ:ALAB) revenue in 2025, which is higher than less than 1% in 2024. This shows the company’s expanding product portfolio.

Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor technology company that provides rack-scale AI infrastructure through purpose-built connectivity solutions.

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.