Astera Labs, Inc. (NASDAQ:ALAB) is one of the AI stocks in the spotlight for investors. On Oct. 7, Citi set a $275 price target on the stock, the Street’s high, and reiterated a “buy” rating.
The firm believes ALAB is poised to skyrocket following Monday’s landmark multibillion-dollar AI infrastructure deal between Advanced Micro Devices and OpenAI.
The semiconductor maker provides hardware and software for cloud infrastructure and artificial intelligence applications, and will provide critical network infrastructure for AMD’s Helios platform, which will debut in 2026.
Citi analyst Atif Malik noted how ALAB’s relationship with AMD will allow it to leverage the OpenAl deal to deploy up to 6 gigawatts of AMD Instinct GPUs.
“We see positive news for ALAB as it is a leader in open AI networking ecosystems, including UALink, which AMD can leverage on its Helios platform arriving in 2026.”
ALAB can also benefit from broader adoption of open rack-scale systems. This, in turn, will put you on track to raise $1,000 per accelerator.
Astera Labs, Inc. (NASDAQ:ALAB) is dedicated to the design, manufacture and sale of semiconductor-based connectivity solutions for cloud infrastructure and artificial intelligence.
While we recognize ALAB’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None.