Down 45% From Its 52-Week High, Wall Street Still Loves This Semiconductor Stock

Wall Street can be surprising at times, as even when a stock takes a sharp hit, major analysts often stay confident instead of backing away. That’s exactly what’s happening with Astera Labs, Inc. (ALAB). Despite being down more than 45% from its 52-week high, analyst coverage remains overwhelmingly bullish.

BNP Paribas recently initiated coverage on Astera Labs with an “Outperform” rating and a $225 price target. The firm called the stock’s drop since mid-September’s high an attractive buying opportunity, citing expectations that Amazon’s next-gen Trainium systems could significantly boost Astera’s revenue over the next three years. Analyst Karl Ackerman noted that Astera’s content in these systems could jump from $100 to over $700 per accelerator, reflecting major growth potential.