10 Best Debt Free Stocks to Buy Now

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

Number of Hedge Fund Holdings: 39

Market Capitalization as of January 31: $16.09 Billion

Enterprise Value: $15.26 Billion

Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor company specializing in connectivity solutions for cloud computing and AI infrastructure. The company develops high-speed data center interconnects that enable efficient communication between GPUs, CPUs, and other computing components. Astera Labs, Inc.’s (NASDAQ:ALAB) products are critical for accelerating AI workloads and cloud computing performance. The company serves major technology firms, including cloud service providers and hyperscale data centers.

Astera Labs, Inc. (NASDAQ:ALAB) is actively pursuing a multifaceted approach to drive business growth and maintain its leadership in the intelligent connectivity solutions market. One of the key strategies is the continuous expansion of its product portfolio. The company has recently introduced the Scorpio Smart Fabric Switch family, which significantly broadens its market opportunity.

The Scorpio family includes the P-Series and X-Series switches. The P-Series is designed for AI Server Head Node scale-out applications and addresses the critical challenge of keeping modern GPUs fed with data at ever-increasing speeds. The X-Series, on the other hand, is built for AI accelerator scale-up clustering, improving the efficiency and size of AI clusters.

These advanced solutions not only enhance the performance of AI systems but also command higher average selling prices, thereby increasing the dollar content per AI platform. This expansion is expected to unlock additional multiyear growth trajectories for Astera Labs, Inc. (NASDAQ:ALAB), as the company targets a total market opportunity of over $12 billion by 2028.