Astera Labs, Inc.: Buy Rating Affirmed Amid AI Growth and Attractive Valuation

Morgan Stanley analyst Joseph Moore upgraded the rating on Astera Labs, Inc. (ALAB – Research Report) to a Buy today, setting a price target of $99.00.

Joseph Moore has given his Buy rating due to a combination of factors that highlight Astera Labs, Inc.’s potential for growth and value. He believes that the ongoing investment in AI technology will continue to drive demand, and the company has successfully navigated past its most significant risk phase. Additionally, the introduction of new products is expected to sustain growth, and the current stock price presents an attractive risk-reward profile.
Moore also notes that the recent decline in stock price offers a favorable entry point for investors, despite the stock’s polarizing nature. He acknowledges that previous enthusiasm for ASICs over GPUs was excessive, but current expectations have become more balanced. Concerns about NVIDIA content loss are considered overstated, as overall content is projected to increase with new product lines. Moore remains optimistic about AI prospects, dismissing concerns about potential AI market saturation and emphasizing the opportunity for growth amid recent investor sentiment shifts.

According to TipRanks, Moore is a 5-star analyst with an average return of 11.4% and a 53.70% success rate. Moore covers the Technology sector, focusing on stocks such as Nvidia, Marvell, and Microchip.

In another report released on May 7, Barclays also maintained a Buy rating on the stock with a $75.00 price target.