Morgan Stanley Raises Astera Labs' PT to $200, Maintains Overweight Rating

Morgan Stanley raises Astera Labs' (ALAB) price target to $200 from $155 and maintains an Overweight rating. The analyst sees a greenfield opportunity in the rack scale AI business worth $17 billion, boosting earnings expectations. Astera Labs provides hardware and software solutions for AI and cloud infrastructure applications.

Morgan Stanley has significantly increased its price target for Astera Labs (ALAB) to $200 from its previous estimate of $155, maintaining an Overweight rating on the stock. The analyst firm sees a substantial opportunity in the growing rack scale AI business, valuing it at $17 billion, which is expected to boost earnings for Astera Labs. The company specializes in providing hardware and software solutions for AI and cloud infrastructure applications [1].

Astera Labs reported strong earnings in its latest quarter, with earnings per share (EPS) of $0.44, exceeding analysts' consensus estimates of $0.33. The company's revenue increased by 149.5% year-over-year, highlighting its robust growth in the AI infrastructure sector. Morgan Stanley's analysts believe that Astera Labs' position in this market segment presents a significant growth opportunity, especially as AI adoption continues to accelerate [1].

The analyst firm also noted that several institutional investors and hedge funds have increased their stakes in Astera Labs, reflecting confidence in the company's prospects. Wellington Management Group LLP, for instance, raised its stake by 253.8% in the first quarter, while other investors such as UBS AM and Aigen Investment Management LP also significantly increased their holdings [1].

Moreover, Astera Labs has received strong analyst support, with several firms upgrading their ratings and price targets. Morgan Stanley's new price target of $200 is in line with the company's current average price target of $129.13, as reported by MarketBeat. The stock's valuation implies substantial upside potential, particularly given the growing demand for AI infrastructure solutions [1].

Astera Labs' strong financial performance and the increasing demand for AI infrastructure solutions are likely to drive its stock price higher in the coming quarters. Investors should closely monitor the company's earnings reports and any updates from analysts to gauge the potential for further price appreciation.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-wellington-management-group-llp-has-668-million-stock-position-in-astera-labs-inc-alab-2025-08-29/