BMO Capital Markets initiated coverage of Astera Labs with an outperform rating and a $375 price target, implying 68% upside from Wednesday’s close. The bank sees Astera Labs as a key networking supplier for artificial intelligence infrastructure, with products designed to address the bandwidth, latency and distance requirements of large computing clusters. BMO estimates that the company will generate more than $1,000 in content per GPU or XPU accelerator, a figure that continues to rise with new platforms. Astera Labs shares have fallen nearly 30% over the past three months, while the iShares Semiconductor ETF has dropped 15%, amid broader market rotation and concerns about the sustainability of the AI trade. BMO’s view is consistent with Wall Street consensus: of the 24 analysts covering Astera Labs, 17 rate the stock a buy or strong buy, while seven have a hold rating.
Source: Read the original article
