Astera Labs NASDAQ:ALAB shares are in the spotlight after Bank of America raised its price target on the semiconductor company, citing stronger confidence that artificial intelligence infrastructure spending could remain robust through 2028.
Bank of America increased its price target on Astera Labs to $450 from $240 while raising forecasts for wafer fabrication equipment spending and the broader semiconductor market. The firm now projects the industry's total addressable market will reach $2.7 trillion by 2030, supported by sustained investment in AI computing infrastructure.
Astera Labs has benefited from that trend as demand for its AI connectivity products continues to expand. The company recently joined the Nasdaq-100 Index and has been gaining traction with hyperscale customers through its signal-conditioning, fabric-switch and connectivity portfolio used in AI data centers.