Astera Labs initiated with an Outperform at Evercore ISI

Evercore ISI initiated coverage of Astera Labs (ALAB) with an Outperform rating and $100 price target. The firm views Astera as “a Tectonic Shift to Parallel Processing play” with 90% of the data center retimer market where nearly all AI servers today contain 5-10 retimers per server. Astera is positioned to grow its revenues at a 40% five-year CAGR and to defend its share due to its strong ecosystem and close alignment with Nvidia (NVDA), the analyst tells investors.