10 Best Under-the-Radar Data Center Stocks to Buy

7. Astera Labs Inc. (NASDAQ:ALAB)

Market Cap: $32.68 billion

Number of Hedge Fund Holders: 52

Astera Labs Inc. (NASDAQ:ALAB) is one of the best under-the-radar data stocks to buy. In the past year, the stock surged by 250.86% to its current price of $194.06. The stock jumped 12.77 percent over the past five days, driven by news that Amazon expanded its partnership with Anthropic earlier this week.

On April 21, RBC Capital analyst Srini Pajjuri adjusted his price target on Astera Labs upward to $250 from $225, while maintaining a Buy rating on the stock as he cited the stronger visibility into the company’s growth with the expected boost in Amazon’s use of Trainium3 AI chips. Astera Labs is a supplier of PCIe retimers, smart cable modules, and active electric cable modules to Amazon Web Services (AWS).

On April 20, Amazon said it is deepening its collaboration with Anthropic, with the latter committing to spend more than $100 billion over the next ten years on AWS technologies. Amazon said this covers current and future generations of Trainium, its custom silicon, as well as  tens of millions of its widely-adopted CPU chip called Graviton cores, to provide superior price performance.

Astera Labs Inc. (NASDAQ:ALAB) provides rack-scale AI infrastructure through purpose-built connectivity solutions. By collaborating with hyperscalers and ecosystem partners, Astera Labs enables organizations to unlock the full potential of modern AI.