Astera Labs, Inc. (NASDAQ:ALAB) is one of the 10 best NASDAQ growth stocks to buy for the next 10 years. Investors are liking the progress on Astera Labs, Inc.’s (NASDAQ:ALAB) product roadmap. ALAB announced significant updates to its Scorpio X-Series line on January 23. The development highlights the company’s continued focus on addressing the evolving needs of the growing AI infrastructure market and hyperscale data centers. Top Coal Importing Country in the World   The updated ScorpioX-Series, develo ...

J P M O R G A N North America Equity Research 29 January 2026 Semiconductors & Semiconductor Capital Equipment / IT Hardware Harlan Sur AC (1-415) 315-6700 harlan.sur@jpmorgan.com Peter K Peng (1-415) 315-8327 peter.k.peng@jpmchase.com Mayur Ramdhani (1-212) 622-1664 mayur.ramdhani@jpmorgan.com J.P. Morgan Securities LLC See page 2 for analyst certification and important disclosures. J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aw ...

Astera Labs Inc. (NASDAQ:ALAB) is one of the best performing new tech stocks to buy now. On January 15, Barclays analyst Tom O’Malley raised the price target for Astera Labs to $165 from $155, while maintaining an Equal Weight rating. This decision was made as part of the firm’s 2026 semiconductor sector outlook. O’Malley identified proximity to AI as the primary engine for stock performance in the coming year, favoring companies deeply integrated into the AI ramp. He anticipates that high-quality firms wi ...

Key Takeaways ALAB is expanding its product portfolio through acquisitions to strengthen its AI infrastructure strategy. ALAB's aiXscale Photonics deal adds optical connectivity capabilities for high-speed, rack-scale AI systems. Astera Labs expects Q4 2025 revenues of $245M-$253M, reflecting strong year-over-year growth. Astera Labs (ALAB) is benefiting from its strategic focus on expanding its portfolio through acquisitions and innovation, positioning itself as a leader in the rapidly growing AI infrastru ...

Core Insights - Astera Labs is expanding its Scorpio X-Series portfolio to address the growing merchant scale-up switching market, projected to reach $20 billion by 2030 [1][3] Group 1: Market Opportunity - The shift towards next-generation AI workloads is changing scale-up connectivity requirements, with hyperscalers scaling to hundreds of thousands of AI accelerators [2] - The merchant scale-up switching market is larger than initially anticipated, requiring diverse connectivity solutions tailored to specific workload profiles [3] Group 2: Product Development - Scorpio X-Series products are purpose-built for scale-up networking and are now in initial production volumes [4] - The expanded roadmap includes features such as increased radix support, platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity [5] Group 3: Technical Features - Increased radix support will allow multiple device configurations to optimize fabric topology for various workload requirements [5] - Platform-specific protocols will enable seamless integration into hybrid AI infrastructure architectures [5] - In-network computing will offload data-intensive tasks from GPUs, enhancing AI workload efficiency [5] - Hypercast technology will improve GPU utilization by reducing communication overhead [5] - Optical connectivity will facilitate multi-rack deployments, scaling to thousands of GPUs [5]

Scorpio X-Series Begins Initial Production with Merchant Scale-Up Switching Market Estimated to Reach $20 billion by 20301News Highlights: Developed in collaboration with hyperscalers, Scorpio X-series products are purpose-built to support scale-up networking, and are now shipping in initial production volumesExpanded features will include support for increased radix, platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity SAN JOSE, Calif., Jan. 22, 2026 (GLOBE NEWS ...

Core Insights - OpenAI, the creator of ChatGPT, is facing significant financial challenges, with estimates suggesting it may need to spend over $200 billion to achieve its growth objectives [1] Group 1: Investment Opportunities - Investing in companies that provide essential services to the AI sector, referred to as "pick-and-shovel" plays, may be a more prudent strategy than waiting for OpenAI to become investable [2] - Astera Labs, Iren, and Nokia are identified as key "pick-and-shovel" businesses that are well-positioned to benefit from the ongoing AI megatrend [3] Group 2: Company Profiles - Astera Labs specializes in products that enhance connectivity within AI data centers, addressing the significant computational needs of AI systems [5] - The company reported a remarkable 104% year-over-year revenue increase in Q3, reaching $230.6 million, with Q4 sales projected between $245 million and $253 million [7] - Iren, originally a Bitcoin mining business, is pivoting to expand its cloud computing capacity to meet the growing demand from hyperscalers for AI processing power [8]

Group 1 - Astera Labs, Inc. (ALAB) is transitioning from a speculative investment in AI infrastructure to a focus on addressing the next bottleneck in the industry, particularly in connectivity and power [1] - The CES 2026 event highlighted the importance of connectivity and power in the future of technology, reinforcing Astera Labs' strategic positioning [1] Group 2 - The investment strategy emphasizes identifying high-potential opportunities with a significant upside potential of 3-5 times the downside risk, leveraging market inefficiencies [1] - A strong margin of safety is prioritized to protect against capital impairment while maximizing long-term compounding [1]

Core Insights - Simplicity in trading strategies is emphasized, with a focus on using a few reliable indicators to avoid analysis paralysis [1][7] - Relative strength is highlighted as a powerful indicator, particularly during market downturns, to identify stocks that outperform the market [2][3][7] Company Highlights - **Advanced Micro Devices (AMD)**: Anticipation for the Helios Platform and MI450 release has driven up shares, with analysts projecting a 60.33% growth in EPS by 2026 [4][5] - **Baidu (BIDU)**: Positive developments include the Ernie AI assistant surpassing 200 million monthly active users and the expansion of the Apollo Go robotaxi service, alongside potential spin-off of its AI chip unit, Kunlunxin [8] - **Astera Labs (ALAB)**: The company has shown resilience in a down market, with expectations of strong revenue growth and profitability, regaining its 50-day moving average [8] - **Critical Mineral Stocks**: Companies like United States Antimony (UAMY) have seen significant gains due to geopolitical tensions and tariff disputes, highlighting the importance of onshoring critical mineral production [11] Market Trends - Small-cap stocks have outperformed larger indices, with the Russell 2000 Index up nearly 7% year-to-date, contrasting with a slight decline in the Nasdaq 100 Index ETF [10]

Core Viewpoint - Astera Labs, Inc. (NASDAQ:ALAB) is gaining attention in the AI sector, with RBC Capital initiating coverage with an Outperform rating and a price target of $225, driven by strong retimer growth and Scorpio-P switch ramp [1][3] Group 1: Company Performance - Astera Labs has faced underperformance recently due to concerns regarding next-generation networking standards and potential impacts from Google TPU advancements on key customers like Nvidia and Amazon [2] - Despite recent challenges, the company's near-term fundamentals remain strong, supported by core retimer growth and the ramp-up of Scorpio-P switches [3] - The Scorpio-X scale-up switch is on track for a 2026 ramp, presenting a significant multi-year opportunity, even with lower volumes from Amazon's Trainium [3] Group 2: Market Potential - Astera Labs is positioned in a market with a $10–15 billion Serviceable Available Market (SAM) and is expected to achieve over 40% growth with gross margins exceeding 70% [3] - The company may have opportunities to participate in multiple scale-up standards, including Ethernet/ESU, in the long term [3]