Astera Labs (ALAB) Downgraded: Barclays Says AI Connectivity Shifts Away from Its UALink

Astera Labs, Inc. (NASDAQ:ALAB) is one of the AI Stocks Making Waves on Wall StreetOn October 20, Barclays’ analyst Tom O’Malley downgraded the stock to Equal Weight from Overweight with an unchanged price target of $155.

Barclays hasn’t just downgraded Astera Labs, but also names such as Lumentum and Marvell Technology, citing how they look “less attractive compared to the AI involved names.”

The downgrade, particularly for ALAB, stems from a lack of adoption of its UALink product, beyond Amazon’s (AMZN) Trainium 3.

The firm stated that it doesn’t see signs of Astera’s United Airlines adoption or momentum, and that the world is now moving towards Ethernet.

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

While we acknowledge the risk and potential of ALAB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALAB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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