Astera Labs initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of Astera Labs with an Overweight rating and $85 price target. Astera is the leader in high speed compute connectivity semiconductors for accelerated compute and artificial intelligence servers and is leveraging its core expertise in high-speed circuit design, digital signal processing, and system-level/software expertise to move into other areas of the datacenter connectivity market, the analyst tells investors in a research note. The firm sees the company driving “strong” 40% revenue and 60% earnings growth annually over the next few years on market growth, new market penetration, and selling price uplift.