Craig-Hallum bullish on Astera Labs, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Astera Labs with a Buy rating and $90 price target. Connectivity continues to be a critical scaling bottleneck in the cloud, accelerated by artificial intelligence, and the firm expects these issues to increase in importance for the foreseeable future. Future cloud architectural evolution toward disaggregation drives further opportunity for connectivity. Astera Labs is well-positioned, via comprehensive semiconductor hardware/software solutions, to support the AI-driven needs today and massive cloud infrastructure changes of the future across multiple protocols that span multiple domains and use cases, Craig-Hallum argues.