Here's What You Need to Know About Astera Labs (ALAB)

Astera Labs, Inc. (NASDAQ:ALAB) is one of the Best Young Tech Stocks to Buy. On December 16, Vivek Arya from Bank of America reiterated a Hold rating on the stock and lowered the price target from $210 to $170. Earlier, on December 9, H.C. Wainwright also lowered the firm’s price target from $195 to $175, and maintained a Buy rating on Astera Labs, Inc. (NASDAQ:ALAB).

Arya of BofA noted that the reduced price target reflects the firm’s updated pricing model of the US semiconductor sector. The firm sees 2026 as the midpoint of an 8 to 10-year AI cycle. The analyst added that they expect some companies in this sector to remain choppy due to increased investor scrutiny over return on investment. However, the firm believes that this will be offset by companies that build large language models and AI factories.

On the other hand, H.C. Wainwright likes Astera Labs, Inc.’s (NASDAQ:ALAB) strong positioning in the AI infrastructure connectivity segment. The analyst highlighted the company’s interconnect vendor of choice, which helps it expand revenue opportunities per rack in the data centers. The firm further noted that the company’s Scorpio X product line is expected to drive revenue growth throughout 2026. This is mainly due to the expected launch of larger switches in the second half of 2026. Moreover, looking ahead to 2027, the firm expects the NVLink Fusion product to sustain and increase revenue per AI accelerator chip.

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.