Barclays Identifies Astera Labs (ALAB) as Top AI Integration Play for 2026 Expecting High-Quality Firms to Outperform

Astera Labs Inc. (NASDAQ:ALAB) is one of the best performing new tech stocks to buy now. On January 15, Barclays analyst Tom O’Malley raised the price target for Astera Labs to $165 from $155, while maintaining an Equal Weight rating. This decision was made as part of the firm’s 2026 semiconductor sector outlook. O’Malley identified proximity to AI as the primary engine for stock performance in the coming year, favoring companies deeply integrated into the AI ramp. He anticipates that high-quality firms will distinguish themselves in 2026, even as the market continues to debate the actual pace and scale of AI deployment.

A day before that, RBC Capital initiated coverage on Astera Labs with an Outperform rating and a $225 price target, suggesting that market worries regarding Ethernet and NVLink Fusion were exaggerated. The firm highlighted that Astera’s UALink opportunity remains substantial regardless of which scale-up technologies the industry adopts.

However, earlier on December 16, Bank of America lowered the price target for Astera Labs to $170 from $210 with a Neutral rating as part of a broad update to US semiconductor stock valuations. BofA views 2026 as the midway point of a decade-long transition toward upgrading IT infrastructure for AI-driven workloads.

Astera Labs Inc. (NASDAQ:ALAB) designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. The company serves hyperscalers and system OEMs.

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.