10 AI Stocks to Watch Amid the DeepSeek Buzz

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

Number of Hedge Fund Holders: 39

Astera Labs, Inc. (NASDAQ:ALAB) is engaged in designing, manufacturing, and selling semiconductor-based connectivity solutions for cloud and AI infrastructure. On January 28, Northland upgraded Astera Labs (ALAB) to “Outperform” from Market Perform with a $120 price target. According to analysts at Northland, shares of Astera Labs, like most other stocks, fell on Monday because of concerns that big US companies may have invested too much in Artificial Intelligence. DeepSeek had revealed a stunning Chat GPT-like AI model with the company claiming that it had spent just $5.6 million on computing power for its base model. However, the firm believes that demand in the sector will remain robust considering tech giants are most likely not going to cut their capital expenditures, which will in turn act as a catalyst for Astera Labs.

“ALAB shares have declined 38% since our downgrade based on the valuation on 1/2/25. Most of that decline occurred yesterday.” They further stated that “We do not expect AMZN, GOOG, META, and MSFT to cut capex when they report earnings over the next few weeks, acting as a catalyst for the shares.”