15 Best Data Center Stocks to Buy Now

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9. Astera Labs Inc. (NASDAQ:ALAB)

Market Cap: $31.0 Billion

Number of Hedge Fund Holders: 45

Astera Labs Inc. (NASDAQ:ALAB) is one of the best data center stocks to buy now. On August 6, Needham analyst Quinn Bolton reiterated a Buy rating on Astera Labs and sharply lifted the price target to $170 from $100, which reflected his growing confidence in the company’s momentum.

Bolton pointed to Astera’s strong execution across its product portfolio as a key driver. The Scorpio, Aries, and Taurus lines have all contributed meaningfully to results, leading to a solid, better-than-expected second quarter of 2025 (results announced on August 5). The engagement metrics for the company’s Scorpio X product have been especially encouraging, with more than ten AI and cloud service providers now working with it, a sign of its technology’s expanding relevance.

The analyst also argued that Scorpio P switches, which are now in volume production and already contributing over 10% of revenue, mark a key development for the business. He also noted steady demand for Taurus Active Electrical Cables, with further growth likely as the industry shifts toward 800G AECs.

Astera Labs (NASDAQ:ALAB) is a semiconductor company that provides connectivity solutions for rack-scale AI infrastructure and data centers.

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