Astera Labs: Notable Discount on Wall Street!

Astera Labs, Inc. (NASDAQ:ALAB) continues to draw attention among AI stocks on Wall Street. On October 20, Barclays analyst Tom O’Malley downgraded the shares from Overweight to Equal Weight, maintaining a price target of $155.

Barclays not only downgraded Astera Labs but also included names like Lumentum and Marvell Technology in their downgrade list, indicating that these companies appear “less attractive” compared to AI-related names.

The downgrade for Astera Labs is particularly attributed to the lack of adoption of the company's UALink product. This product is unable to make an impact beyond Amazon’s Trainium 3 solution.

The firm expressed that Astera has not seen adoption or momentum indicators with United Airlines and noted a global shift towards Ethernet technology.

Astera Labs, Inc. (NASDAQ:ALAB) designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure.

While acknowledging the investment potential of ALAB, it is believed that certain AI stocks offer greater upside potential and carry less downside risk. If you are looking for an AI stock with a very low valuation that could significantly benefit from Trump-era tariffs and local manufacturing trends, discover our free report on the best short-term AI stocks.