15 Best New Tech Stocks To Invest In

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2. Astera Labs Inc. (NASDAQ:ALAB)

Market Capitalization as of January 21: $21.14 billion

Number of Hedge Fund Holders: 39

Astera Labs Inc. (NASDAQ:ALAB) develops semiconductor solutions for high-performance computing and specializes in intelligent connectivity for cloud and AI infrastructure. Its technology optimizes data flow within complex systems and enables faster and more efficient data processing.

Morgan Stanley downgraded its stock to Equal Weight on January 21 and reiterated a $142 target price because it believes that the market has already factored in the positive impact of the company’s new PCIe switches. The competition from Nvidia’s Blackwell platform and other players challenges the company as well. Despite these concerns, Morgan Stanley expects Astera Labs Inc. (NASDAQ:ALAB) to surpass financial projections in the upcoming quarter due to increasing ASIC sales.

The company’s Q3 2024 revenue surged 47% sequentially to a record $113.1 million due to the demand for its Aries and Taurus products. These are product lines for high-speed data transmission within data centers, with Taurus specifically focusing on 400-gig Ethernet applications. The company also initiated preproduction shipments of its new Scorpio Smart Fabric Switch family in Q3. It is designed for high-speed PCIe Gen 6 connectivity in AI systems. This growth reflects the importance of high-bandwidth connectivity solutions.

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