Astera Labs (NASDAQ:father) is one of Artificial intelligence stocks are in the spotlight for investors. On October 7, Citi set a street price target of $275 on the stock and reiterated a “buy” recommendation.
The company believes ALAB is poised to rally following Monday’s landmark multi-billion-dollar AI infrastructure deal between Advanced Micro Devices and OpenAI.
The semiconductor maker provides hardware and software for AI applications and cloud infrastructure, and will provide critical networking infrastructure for AMD’s Helios platform, scheduled to debut in 2026.
Citi analyst Atif Malik noted that ALAB’s relationship with AMD will allow it to leverage the OpenAl agreement to deploy up to 6 gigawatts of AMD Instinct GPUs.
“We see the news positively for ALAB as it is a leader in open AI networking ecosystems including UALink AMD is able to leverage its Helios platform coming in 2026.”
ALAB may also benefit from wider adoption of open shelving systems. This, in turn, will put her on track to earn $1,000 per accelerator.
Astera Labs, Inc. (NASDAQ:ALAB) designs, manufactures and sells semiconductor-based connectivity solutions for cloud infrastructure and artificial intelligence.
While we recognize ALAB’s potential as an investment, we believe some AI stocks offer greater upside potential and carry less downside risk. If you’re looking for undervalued AI stocks that will also benefit significantly from the Trump-era tariffs and the reshoring trend, check out our free report on Best AI stocks for short term.
Read next: 10 trending AI stocks on Wall Street’s radar and 10 AI stocks shaping Wall Street’s next big rally
Disclosure: None.
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