Shares of semiconductor-based connectivity solutions company Astera Labs Inc (NASDAQ:ALAB) are moving higher Wednesday after the company introduced new fabric switches for AI infrastructure. The stock may also be getting a lift from positive analyst coverage.
What To Know: Astera Labs announced a new Scorpio Smart Fabric Switch portfolio designed for AI workloads in accelerated computing platforms deployed at cloud-scale.
Astera introduced the Scorpio P-Series for GPU connectivity and the Scorpio X-Series for back-end GPU clustering. The switches have been optimized for AI dataflows to deliver maximum predictable performance, high reliability, simple cloud-scale deployment, reduced time-to-market and lower cost of ownership.
"Hyperscalers are deploying highly specialized AI platforms at an unprecedented pace, scale, and complexity," said Jitendra Mohan, CEO of Astera Labs.
"Scorpio offers energy efficient fabric solutions with predictable, secure, and high-performance data flows and extensive fleet management capabilities for accelerated AI infrastructure deployments at cloud-scale."
Astera Labs is a supplier of connectivity solutions for multiple big tech companies. Brian Kelleher, senior vice president of GPU Engineering at Nvidia Corp (NASDAQ:NVDA), commented on Astera's new switch portfolio in the release.
"AI infrastructure requires the right balance of interconnect performance, efficiency and capabilities to enable accelerated computing for AI workloads at scale. The new Scorpio fabric switch portfolio can support NVIDIA accelerated AI infrastructure deployments across a wide variety of AI and HPC workloads," Kelleher said.
Additionally, Morgan Stanley analyst Joseph Moore maintained Astera Labs with an Overweight rating and raised the price target from $55 to $74. Needham analyst Quinn Bolton reiterated a Buy and maintained a price target of $65.
ALAB Price Action: Astera Labs shares were up 14.7% in after-hours, trading at $60.75 at the time of writing, according to Benzinga Pro.
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