Needham Doubles Down on Astera Labs (ALAB) Amid Product Momentum

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 (NASDAQ:ALAB) and sharply lifted the price target to $170 from $100, which reflected his growing confidence in the company’s momentum.

Needham Doubles Down on Astera Labs (ALAB) Amid Product Momentum

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Bolton pointed to Astera Labs’s (NASDAQ:ALAB) 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.

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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.