10 AI Stocks on Wall Street’s Radar

5. Astera Labs Inc (NASDAQ:ALAB)

Astera Labs Inc. (NASDAQ:ALAB) designs and manufactures PCIe and ASIC ramps to boost hardware connectivity for AI and cloud infrastructure. It supplies AI fabric switches to top AI firms like Nvidia (NASDAQ:NVDA), Advanced Micro Devices Inc (NASDAQ:AMD), and Intel (NASDAQ:INTC).

On January 21st, Morgan Stanley downgraded the stock to “Equal Weight” from “Overweight” and reiterated a $142 target price per share. The brokerage explained that the company’s stock valuation has already priced in the market’s optimism around Astera Labs Inc’s (NASDAQ:ALAB) new PCIe switches. Furthermore, Nvidia’s (NASDAQ:NVDA) transition to Blackwell and stiff industry competition also pose challenges for Astera Labs Inc (NASDAQ:ALAB). Although Morgan Stanley forecasts limited upside for the company, it sees Astera Labs Inc. (NASDAQ:ALAB) exceeding financial projections in the next quarter on growing ASIC sales.