8 Best Up and Coming AI Stocks to Buy Now

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​6. Astera Labs, Inc. (NASDAQ:ALAB)

Number of Hedge Fund Holders: 53

Astera Labs, Inc. (NASDAQ:ALAB) is one of the Best Up and Coming AI Stocks to Buy Now. On June 4, Stifel reiterated a Buy rating on Astera Labs, Inc. (NASDAQ:ALAB) with a price target of $260.

The rating comes after the firm met with the management at the Cross-Sector 1-on-1 2026 conference in Boston. Stifel noted meeting the company’s former CFO and current Strategic Advisor, Mike Tate, and Head of IR Leslie Green. Following the meeting, the firm found that the company’s total addressable market is expanding across the portfolio. Moreover, Stifel also noted that Astera’s optical roadmap presents meaningful growth opportunities, and lastly, it sees demand remaining healthy as the firm did not find any signs of over-ordering.

Earlier, on May 26, Northland downgraded the stock from Outperform to Market Perform without disclosing any price targets due to valuation concerns. The firm noted that it acknowledges near-term positives, including a rise in estimates as the Scorpio-X product ramps up. However, the downgrade is driven by a more cautious, longer-term view. Northland expects the datacenter spending to decline in calendar year 2027 as the hyperscalers are facing increased cash constraints.

Astera Labs, Inc. (NASDAQ:ALAB) is a global semiconductor company that provides hardware and software solutions for AI and cloud infrastructure applications to solve memory, data, and networking bottlenecks. The company’s operations are divided into the following geographical segments: Taiwan, China, the United States, and Other.

While we acknowledge the potential of ALAB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALAB and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Up and Coming AI Stocks to Buy Now.

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