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Astera Labs initiated with a Neutral at BofA

BofA initiated coverage of Astera Labs (ALAB) with a Neutral rating and $230 price target. The provider of AI connectivity semiconductor solutions addresses a multi-billion dollar market opportunity in AI scaling via its key retimer and switching chips and modules, based on the “PCIe” and soon the emerging “UALink” standards, but the firm flags potential deceleration in Astera’s growth on increasing competition from Nvidia’s (NVDA) “NVLink” and Broadcom’s (AVGO) “Scale-Up Ethernet” based switches.

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