Stifel Reaffirms Buy on Astera Labs (ALAB), Says Nvidia/AWS Concerns Are Overblown

Astera Labs, Inc. (NASDAQ:ALAB) is one of the AI Stocks Analysts are Tracking Closely. On December 3, Stifel analyst Tore Svanberg maintained a Buy rating on the stock with a $200 price target. The rating affirmation follows ALAB’s stock plunge post AWS/NVDA announcement to integrate NVLink Fusion into its Trainium 4 XPU deployments. The announcement sparked investor concerns regarding ALAB’s position in the NVLink ecosystem, particularly the switch opportunity risk in NVLink deployments. However, the firm addressed these concerns stating that AWS/NVDA tie-up concerns are overblown.

"We believe these fears are misplaced and would be acquirers of ALAB stock on weakness. ALAB’s support for the NVLink ecosystem and more active role in hyperscaler custom designs mean the company should have a continued solid content opportunity in NVLink Fusion designs across hyperscaler deployments.”

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. READ NEXT: 10 AI Stocks Making Headlines on Wall Street and 10 AI Stocks in Focus This Week. Disclosure: None.