Astera Labs initiated with an Outperform at William Blair

William Blair analyst Sebastien Naji initiated coverage of Astera Labs (ALAB) with an Outperform rating. Astera Labs is a “rapidly growing share gainer” in the connectivity chip market, the analyst tells investors in a research note. The firm says the company’s products are core components of artificial intelligence servers and racks. Astera’s focus on improving the speed of data center communications and its embrace of open protocols have made it a critical partner for the world’s hyperscalers, contends William Blair. The firm believes a combination of “best-in-class hardware and software” positions the company for a “multiyear runway of robust revenue and earnings growth.”