Astera Labs rises after Northland upgrade on expectations of prolonged AI spending cycle

Astera Labs

17/08/2026 13:13

** Semiconductor connectivity firm Astera Lab's shares ALAB.O rise 5.7% to $339.81 premarket
** Brokerage Northland Capital raises the rating on ALAB to outperform from market perform
** Expects further positive earnings revision and longer-than-expected AI infrastructure spending cycle, with co's content per server rack to continue increasing
** Says co is also well-positioned in signal conditioning for AI infrastructure
** Adds firm expects the $200 bln AI infrastructure funding for Anthropic backed by Google GOOGL.O, Broadcom AVGO.O and others, and Nvidia's NVDA.O plan for $500 bln private capital with other partners will push peak AI spending out into 2027
** Heavy reliance on limited number of end customers, supply chain dependency and general semiconductor industry cyclicality might be risks to ALAB
** 16 of 23 brokerages rate it "buy" or higher and seven "hold"; median PT $425 - LSEG data
** As of last close, stock up 93.3% YTD

(Reporting by Anand Gopal in Bengaluru)
((AnandGopal.R@thomsonreuters.com))