11 Most Promising New Technology Stocks According to Analysts

9. Astera Labs, Inc. (NASDAQ:ALAB) 

Analyst Upside Potential: 17.88%

Number of Hedge Fund Holders: 51

Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor design and manufacturing company that also sells semiconductor-based connectivity solutions for cloud and AI infrastructures. Their core offering is the Intelligent Connectivity Platform, which integrates semiconductor-based products such as PCIe, CXL, and Ethernet connectivity ICs. The company is based in California and is recognized for its innovation in connectivity solutions.

On May 7, Atif Malik, an analyst from Citi, maintained a Buy rating on the stock with a price target of $100. The analyst noted that despite a slight decline in the stock price, the company experienced robust demand for its AI retimers, CXL, and Taurus products. Malik expects this strong growth to continue, particularly driven by the Scorpio product, which is strategically important for scaling AI networking capabilities.

Malik also noted that Astera Labs, Inc.’s (NASDAQ:ALAB) first-to-market PCIe Gen 6 technology is anticipated to drive significant sales growth in the coming years. The company also has a strategic edge due to its close ties with Nvidia and hyperscalers such as AWS. It is one of the most promising new technology stocks according to analysts.

Artisan Small Cap Fund stated the following regarding Astera Labs, Inc. (NASDAQ:ALAB) in its Q4 2024 investor letter:

“Among our top Q4 contributors were Astera Labs, Inc. (NASDAQ:ALAB), Veracyte and Vita Coco. Astera Labs is a fabless provider of connectivity chips designed to address data, network and memory bandwidth bottlenecks in data centers. With increasingly powerful graphics processing units and central processing units—costing $5,000 to $40,000 and depreciating within 3–5 years—often operating at only ~50% utilization due to architectural constraints, Astera’s products play a critical role in enhancing efficiency. As compute architectures become more heterogeneous across graphic processing units, central processing units and custom accelerators, Astera’s solutions enable better collaboration between disparate chips. Recent earnings displayed strong momentum of its core products and benefited from adding new offerings to drive scale within the data center market, driving a strong rally in shares. After the strong rally, we trimmed our position based on valuation.”