10 Best Semiconductor Stocks to Buy Heading into 2026

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3. Astera Labs, Inc. (NASDAQ:ALAB)

Number of Hedge Fund Holders: 57

Average Upside Potential: ~29.3%

Astera Labs, Inc. (NASDAQ:ALAB) is one of the best Semiconductor Stocks to Buy Heading into 2026. On November 17, Northland analyst Gus Richard upgraded the company’s stock to “Outperform” from “Market Perform” with a price objective of $175. As per the analyst, Astera Labs, Inc. (NASDAQ:ALAB) works with several hyperscalers, with Amazon being its lead customer. The analyst is also confident in Amazon’s data center spending and Astera Labs, Inc. (NASDAQ:ALAB)’s revenue growth.

In Q3 2025, the company’s total revenue rose 104% YoY and 128% YoY for the three and nine months ended September 30, 2025, respectively. This rise was mainly because of an increase in overall unit shipments, aided by increased demand for its Aries, Scorpio, and Taurus products, and elevated overall average selling prices due to an increased mix of hardware modules and Scorpio products.

Astera Labs, Inc. (NASDAQ:ALAB)’s operating income amounted to $55.4 million in Q3 2025, compared to an operating loss of $8.8 million amidst strong revenue growth. During Q3 2025, the company saw strong demand and upside throughout its signal conditioning, smart cable module (SCM), and switch fabric portfolios as new AI platforms ramped up production.  For Q4 2025, the company expects revenue of between $245 million – $253 million.

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

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