Artificial intelligence is reshaping just about everything we do. If you’re shopping online, there’s a good chance that an AI is offering up suggested products based on your shopping history. If you’re scrolling through social media, AI is likely showing you the types of content you want to see. AI is even being used in many ways to improve medical outcomes across a wide range of conditions.
However, in order for AI to operate, cloud infrastructure and incredibly powerful semiconductors must be produced. That’s where Astera Labs (Nasdaq: ALAB) comes in. The company is quickly becoming a cornerstone in the development of AI infrastructure and analysts expect that to pay off in a big way.
In fact, two of the 12 analysts weighing in on the stock give it an $85 price target – suggesting that it could climb by over 60% within the next 12 months.
Key Points:
- Astera Labs has become an integral player in the AI industry.
- With the applications of AI being widespread and expected to grow, this stock could see meaningful gains ahead.
- At least two analysts expect the stock to climb by more than 60% in the next 12 months.
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What Is Astera Labs?
At its core, Astera Labs is a technology company that’s focused on the development of infrastructure for the AI industry. In particular, the company focuses on the design, development, and sale of semiconductor-based connectivity solutions. These solutions are a must-have in the world of AI.
In fact, Astera Labs’ products are designed to help companies, developers, and even enterprise-level customers develop and deploy high-performance cloud and AI infrastructure. Its products include:
- PCIe Solutions: PCIe solutions are high-speed interfaces that make it possible to connect several components within a computer system.
- CXL Solutions: Standing for “computer express link,” CXL products make high-speed communication between storage, processors, memory units, and other devices possible.
- Ethernet Connectivity Solutions: Finally, the company offers ethernet connectivity solutions for seamless connectivity of multiple systems.
Outside of its hardware products, Astera Labs also offers COSMOS, a suite of software solutions that offer optimization tools and tools for AI system management.
What Do Analysts Think?
All told, analysts have a relatively positive opinion of Astera Labs. 12 analysts are currently weighing in on the stock, giving it an average “Buy” rating. The average price target is $67.67, suggesting the stock has room to grow by nearly 30% over the next 12 months. However, analysts at Jefferies Financial Group and Northland Securities have price targets set at $85 per share. If Astera Labs does climb to $85 per share, it will have grown by 62.9% over its current price.
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