Retail Sentiment Brightens For Astera Labs After Stock Soared 15% Post Product Launch: Message Volume Hits One-Year High

Shares of Astera Labs Inc (ALAB) jumped 15% on Wednesday, closing at $61.22, after the company unveiled  its switches designed for AI infrastructure. The highlight of the launch was the industry’s first PCIe 6 switches, offering double the bandwidth and power efficiency as compared to its predecessor, the PCIe 5 switches.

The NVIDIA Corp (NVDA) supplier specializes in semiconductor-based connectivity solutions. According to market analysts, the new switches position the company to compete with industry leaders like Broadcom (AVGO), which currently dominates the data center switch market with PCIe 5 switches.

Joseph Moore, an analyst at Morgan Stanley, reiterated his ‘overweight’ rating on Astera Labs and raised his price target from $55 to $74 following the product launch. "Announcing first is encouraging, but we are likely to see announcements from connectivity peers in the coming weeks," Moore said in his note. Despite potential competition, he believes Astera has a strong opportunity in the $5 billion switch market.

Jefferies analysts also maintained a "Buy" rating for ALAB stock with a price target of $65. They noted that the new product line could help Astera diversify and broaden its reach within the AI infrastructure market, allowing it to expand its market share.

Retail sentiment on Stocktwits has inched up into the ‘extremely bullish’ territory (76/100) from ‘bullish’ a day ago , accompanied by ‘extremely high’ message volume that hit a one-year high.

Astera Labs' stock has been on a hot streak, jumping 23% in the past week and 70% since its IPO in March.

For updates and corrections email newsroom@stocktwits.com.

Read more: Nvidia Stock On Track For Sixth Day Of Gains: Retail Investors Are All Smiles

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