Astera Labs price target raised to $200 from $155 at Morgan Stanley

Morgan Stanley analyst Joseph Moore raised the firm’s price target on Astera Labs (ALAB) to $200 from $155 and keeps an Overweight rating on the shares. The rack scale AI business has brought about a $17B greenfield opportunity “virtually overnight,” creating opportunity for Astera, Nvidia (NVDA), Broadcom (AVGO), Marvell (MRVL) and others, the analyst tells investors in a scale-up networking primer. Scale-up networking refers to high-speed communication between GPUs and accelerators in the same server or rack, allowing them to function as one large supercomputer and access the same memory, which is distinct from scale-out networking involving the connecting of multiple systems across a broader data center infrastructure, the analyst explains.