BofA Raises its Price Target on Astera Labs, Inc. (ALAB) to $200 and Maintains a Neutral Rating

SelfRugger · 2026-02-22T04:53:45+00:00

BofA raised its price target for Astera Labs, Inc. to $200 while maintaining a Neutral rating, citing long-term demand visibility from a new Amazon warrant deal. Astera's Q4 revenue exceeded expectations, showcasing strong growth, though high operating costs may limit leverage.

SelfRugger

2026-02-22 04:53:45

Abstract generation in progress

BofA Raises its Price Target on Astera Labs, Inc. (ALAB) to $200 and Maintains a Neutral Rating

Jeff Lewis

Sat, February 21, 2026 at 8:10 PM GMT+9 2 min read

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Astera Labs, Inc. (NASDAQ:ALAB) is among the 12 Best Tech Stocks that Beat Earnings Estimates.

On February 11, 2026, BofA raised its price target on Astera Labs, Inc. (NASDAQ:ALAB) to $200 from $185 and maintained a Neutral rating. BofA said the newly announced $6.5B Amazon (AMZN) warrant agreement reinforces long-term demand visibility and Astera’s position in accelerating AI infrastructure buildouts. BofA also noted the warrant is expected to create about a 200 basis point headwind to gross margins, while high opex intensity continues to limit operating leverage.

Also on February 11, 2026, JPMorgan lowered its price target on Astera Labs to $205 from $215 and maintained an Overweight rating following the company’s strong results and guidance driven by AI demand and new product ramps. The firm cited lower gross margins and higher operating expenses as factors behind the target reduction.

BofA Raises its Price Target on Astera Labs, Inc. (ALAB) to $200 and Maintains a Neutral Rating

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On February 10, 2026, Astera Labs reported Q4 revenue of $270.58M versus consensus of $249.55M. CEO Jitendra Mohan said the company “delivered strong financial results in Q4” with revenue growing 17% sequentially to a record $270.6 million, capping full-year revenue growth of 115% year-over-year. He added that the market opportunity for its Intelligent Connectivity Platform continues to expand, and that Astera Labs is accelerating R&D investment, including opening a new design center in Israel.

Astera Labs, Inc. (NASDAQ:ALAB) designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure.

While we acknowledge the potential of ALAB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Most Profitable Undervalued Stocks to Buy and 11 Best Mining Stocks to Buy According to Wall Street.

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