10 AI Stocks Analysts Are Backing Right Now

8. Astera Labs, Inc. (NASDAQ:ALAB)

Number of Hedge Fund Holders: 56

Astera Labs, Inc. (NASDAQ:ALAB) is one of the 10 AI Stocks Analysts Are Backing Right Now. On September 2, Deutsche Bank analyst Ross Seymore raised the price target on the stock to $200.00 (from $160.00) while maintaining a Buy rating. The firm said that Astera Labs is optimistic on its positioning in artificial intelligence.

As per analyst Ross Seymore, Astera Labs, Inc. (NASDAQ:ALAB) took the opportunity at a recent Duetche Bank conference to highlight that the impressive capex from hyperscalers is continuing and there is also a diversification of its customer base and product offerings.

“The continued expansion of AI cluster sizes has increased the need for seamless connectivity and real-time diagnostics within data centers to focus on limiting processor idle time and increasing efficiency,” Seymore added.

Astera Labs, Inc. (NASDAQ:ALAB) also discussed how the increasing focus on total cost of ownership provides an “intriguing” opportunity due to a greater mix of custom silicon among hyperscalers.

“The culmination of these impacts has led to an impressive content increase from the inception of the company, going from ~$100 per accelerator on the back of its retimer business to now multiple thousands of dollars as its Scorpio series ramps.”

Astera Labs, Inc. (NASDAQ:ALAB) is engaged in the design, manufacture, and selling of semiconductor-based connectivity solutions for cloud and AI infrastructure.