ALAB

Astera Labs delivers high-speed connectivity solutions for AI servers, with Q2 revenue up 104% YoY and Scorpio X ramping faster than expected. ALAB's transition from server-level to rack-level solutions, including UALink and optics, positions it for continued growth amid evolving AI infrastructure demands. Despite a premium valuation (128.7x EV/EBITDA), I rate ALAB a buy given its 65% sales CAGR, robust margins, and strong cash generation outlook.

Here, we have picked three AI stocks, NVDA, ALAB and DELL, which are well-poised to benefit from AI's growing use and ability to solve complex problems.

Astera Labs is growing rapidly as it provides critical connectivity solutions for high-performance AI infrastructure. Marvell Technology offers a more diversified portfolio with established dominance in data center silicon and networking connectivity.

Triple-digit growth, consecutive earnings beats, and a juicy technical setup back the bull case.

Astera Labs is a fast-growing connectivity specialist focused on the artificial intelligence infrastructure market. Qualcomm is a diversified semiconductor leader with dominant positions in mobile, automotive, and wireless licensing.

Astera Labs expands its Leo CXL memory controller lineup as hyperscaler design wins and new products strengthen its AI infrastructure connectivity position.

The cables, chips, and switches connecting AI clusters are now the bottleneck the entire industry is racing to fix, and three mid-cap names are positioned at exactly that chokepoint before most retail investors realize the opportunity exists.

ALAB appears to offer more upside than KLAC, backed by stronger earnings growth, bigger surprises, and rapid PCIe 6 adoption.

As high-value AI applications drive explosive memory-footprint growth amid tight supply, new connectivity architectures enhance optimal memory utilization and reuse Highlights New Leo X-Series optimizes token economics: Paired with Astera Labs' Scorpio X-Series Fabric Switches, Leo X-Series enables fabric-attached memory for long-context, KV-cache-intensive workloads. Platform-specific interfaces and customizable features improve inference performance with up to 62% faster time to first token (TTFT) and up to 22% more tokens per second (TPS).

Here is how Astera Labs, Inc. (ALAB) and Allient (ALNT) have performed compared to their sector so far this year.