Stifel Reaffirms Buy on Astera Labs (ALAB), Says Nvidia/AWS Concerns Are Overblown

Astera Labs, Inc. (NASDAQ:ALAB) is one of the AI Stocks Analysts are Tracking Closely. On December 3, Stifel analyst Tore Svanberg maintained a Buy rating on the stock with a $200 price target. The rating affirmation follows ALAB’s stock plunge post AWS/NVDA announcement to integrate NVLink Fusion into its Trainium 4 XPU deployments.

The announcement sparked investor concerns regarding ALAB’s position in the NVLink ecosystem, particularly the switch opportunity risk in NVLink deployments. However, the firm addressed these concerns stating that AWS/NVDA tie-up concerns are overblown.

“We believe these fears are misplaced and would be acquirers of ALAB stock on weakness. ALAB’s support for the NVLink ecosystem and more active role in hyperscaler custom designs mean the company should have a continued solid content opportunity in NVLink Fusion designs across hyperscaler deployments.”

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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Disclosure: None.