Citi says buy Astera and Arista on yesterday’s selloff

Citi recommends using the weakness yesterday in shares of Astera Labs (ALAB) and Arista Networks (ANET) as buying opportunities. While the Ethernet for Scale-Up Networking collaboration announcement brings added competition to Astera, the company’s opportunity beyond 2026 with UALink remains favorable, the analyst tells investors in a research note. After speaking with Astera management, Citi believes hyperscaler interest in UALink is unchanged post the ESUN news. Astera remains the “cornerstone UALink company as it is set to provide the crucial switch,” contends the firm.