Astera Labs (ALAB) is a Top GenAI Stock to Buy, Despite Analyst's 'Market Perform' Rating

Astera Labs Inc. (NASDAQ:ALAB) is one of the best new tech stocks to buy right now. On November 21, Raymond James analyst Simon Leopold resumed coverage of Astera Labs with a Market Perform rating but no price target. Leopold informed investors that although the company is set up to benefit from GenAI, the stock price reflects its current value, and Astera must contend with ongoing structural difficulties.

Earlier in the company’s Q3 2025 earnings report, Astera Labs announced that its quarterly revenue hit a new record of $230.6 million, which was a sequential increase of 20% and a year-over-year rise of 104% due to strong demand across the signal conditioning, smart cable module/SCM, and switch fabric portfolios, driven by new AI platform production ramps.

Looking forward to Q4, Astera Labs projects continued growth with expected revenue in the range of $245 to $253 million. Management anticipates continued momentum from PCIe 6 and robust growth from its Taurus Ethernet SCMs. The company also announced a definitive agreement to acquire aiXscale Photonics GmbH to accelerate the development of photonic scale-up solutions, which are critical for the massive bandwidth requirements of AI Infrastructure 2.0.

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.