Astera Labs shares rise after RBC raises price target citing growth in AI infrastructure and Amazon Trainium chip adoption.
RBC Capital increased its price target for Astera Labs (NASDAQ:ALAB) to $250 from $225, maintaining a Buy rating. The firm highlighted the company’s role in AI data-center connectivity, particularly its potential to benefit from Amazon’s Trainium chips usage growth.
Astera Labs, which provides connectivity solutions for AI processors, has seen its stock surge 180% over the past year and 11% year-to-date. The company’s COSMOS suite and microcontroller-based products are positioned as critical for AI infrastructure buildout.
Analysts noted the stock’s strong performance but suggested other AI-related equities may offer higher upside with lower risk.