10 AI News and Ratings That You Need To Take a Look At

4. Astera Labs, Inc. (NASDAQ:ALAB)

Number of Hedge Fund Holders: 51

Astera Labs, Inc. (NASDAQ:ALAB) develops semiconductor-based connectivity solutions for cloud and AI infrastructure.

On March 14, Raymond James initiated coverage on Astera Labs with an Outperform rating and an $82 price target, highlighting its strong position in high-speed connectivity amid rising GenAI demand. The firm noted that increasing computational needs are driving demand for advanced interconnects, an area where ALAB excels. The company leads the $2 billion PCIe retimer market and is expanding in the Active Electrical Cable segment.

Furthermore, the newly introduced Scorpio fabric switches nearly double ALAB’s serviceable market and address concerns about its role in NVIDIA’s Blackwell NVL systems, the firm noted. Growth in custom ASICs also presents expansion opportunities through open standards-based back-end networks. At 38 times FY26 estimated EPS, the firm views ALAB’s valuation as justified due to strong GenAI-driven growth potential, high margins, and a projected 25-30% growth rate. While the stock has pulled back this year due to “AI fatigue,” Raymond James sees this as a buying opportunity. Risks include competition, customer concentration, and possible reductions in cloud capital spending.