Citi Lowered PT on Astera Labs (ALAB), Is It Still the Best Growth Stock?

2 hours ago 2

Talha Qureshi

Sun, April 12, 2026 astatine 5:10 PM CDT 2 min read

Astera Labs, Inc. (NASDAQ:ALAB) is 1 of the Best Growth Stocks to Buy With Highest Upside Potential. On April 2, Citi lowered its terms people connected Astera Labs, Inc. (NASDAQ:ALAB) from $250 to $200, portion maintaining a Buy standing connected the stock. The steadfast cited that the reduced terms people is owed to the AI valuations. Moreover, Citi remains bullish connected the company’s Scorpio accidental and believes it remains intact. The steadfast besides noted that Astera Labs stands to summation importantly from the expanding AI scale-up trend, positioning it arsenic a premier beneficiary successful AI infrastructure demand.

The analysts explained successful the probe enactment that the displacement to the PCIe power business, particularly the Scorpio family, volition boost net importantly by 2028. Moreover, the co-packaged optics volition complement alternatively than regenerate this halfway opportunity.

Overall, the communicative astir Astera Labs, Inc. (NASDAQ:ALAB) remains bullish arsenic 78% of the 23 analysts covering the banal support a Buy rating. The mean 12-month terms people reflects much than 72% upside from the existent level.

Astera Labs, Inc. (NASDAQ:ALAB) provides high-performance connectivity solutions indispensable for AI information centers, including retimers, switches, and interconnect technologies. With expanding request for businesslike information question successful AI workloads, beardown expert support, and increasing designation arsenic a halfway enabler of AI infrastructure, the institution is well-positioned to present important semipermanent growth, supporting a high-upside concern thesis.

While we admit the imaginable of ALAB arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 7 Hot Growth Stocks to Invest successful Right Now and 7 Ridiculously Cheap Stocks to Buy According to Wall Street Analysts.

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