Astera Labs initiated with an Outperform at Northland

Northland analyst Gus Richard initiated coverage of Astera Labs with an Outperform rating and $85 price target. AI is pushing the limits of processing, memory, and bandwidth and Astera address one of these three vectors that drive compute performance, bandwidth, with a software-defined IC architecture that addresses traditional connectivity solutions’ limitations, the analyst tells investors. Astera’s COSMOS software is used by hyperscalers for fleet management to configure, manage, monitor, and optimize products, making their products “sticky,” the analyst added in an initiation that follows Astera having come public last week.