NVLink/Trainium4 ReInvent mention not negative for Astera Labs, says Jefferies

Jefferies keeps a Buy rating and $225 price target on Astera Labs (ALAB) while calling today’s 13% decline in the stock an “over-reaction”. The roadmap by unveiled by Amazon.com (AMZN) at ReInvent confirming chip specs for Trainium3/Trainium4 and debuting a new Trainium3 UltraServer highlights improved performance, but overall performance still trails other solutions, the analyst tells investors in a research note. The earlier Trainium3 timing is a negative for Marvell (MRVL) as the revenue is shared with Alchip and Trainium4 will likely be a chiplet sale, also limiting revenue, while on the Networking front, key notables include Astera Labs’ Scorpio X switch connecting the XPUs in the Trainium3 racks and NVLink Fusion integration into some Trainium4 configurations, which is actually positive for Astera Labs, Jefferies added.