Susquehanna and Morgan Stanley Raise Astera Labs (ALAB) Price Targets after Strong Q1 Results

Astera Labs, Inc. (NASDAQ:ALAB) is included among the 10 Best Stocks to Buy Now for a $1 Million Portfolio.

Susquehanna and Morgan Stanley Raise Astera Labs (ALAB) Price Targets after Strong Q1 Results

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On May 7, Susquehanna analyst Mehdi Hosseini raised the firm’s price recommendation on Astera Labs, Inc. (NASDAQ:ALAB) to $230 from $155. It reiterated a Neutral rating on the shares. The firm said Astera Labs reported first-quarter results and second-quarter guidance above consensus estimates. Susquehanna noted that the company continues to diversify its product revenue while gaining more connectivity content per AI rack.

The same day, Morgan Stanley analyst Joseph Moore raised the firm’s price target on Astera Labs to $240 from $210 and kept an Overweight rating on the stock. Moore said Astera is executing at a high level, with Scorpio helping drive near-term growth. He added that the company is benefiting from rising content per XPU, early leadership in PCIe Gen 6, and future opportunities tied to optical and custom solutions. According to the analyst, Astera “remains well positioned for sustained AI infrastructure growth.”

Astera Labs, Inc. (NASDAQ:ALAB) designs and delivers semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform combines semiconductor technology, microcontrollers, sensors, and software to improve performance, scalability, and data management.

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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