ALAB

ASTERA LABS INC COMMON STOCK (Ticker: 1ALAB)

2026-01-16 03:23 PM

+6.35%

Astera Labs surges on RBC Capital initiation with Outperform rating and $225 target

RBC Capital initiated coverage on Astera Labs with an Outperform rating and $225 price target, citing strong near-term fundamentals from core retimer growth and Scorpio-P switch ramps. The firm highlighted the expected 2026 ramp of Astera's Scorpio-X scale-up switch as a key driver, according to Investing.com.

Analysis

The $225 price target implies roughly 20% upside from current levels, providing a clear catalyst for today's move. This extends a volatile but generally positive pattern—the stock has gained over 13% in the past five trading days despite Wednesday's pullback. Broader chip sector strength from TSMC's Q4 beat may also be providing a tailwind, though ALAB's outperformance versus the flat sector suggests the analyst initiation is the primary driver.

Sources

RBC Capital initiates Astera Labs stock with Outperform rating, $225 target
Astera Labs Maps Rack-Scale AI Roadmap at Needham Conference, Sees Scale-Up Switching Momentum
Chip Stocks: NVIDIA, AMD, Micron Lifted by TSMC Q4 Beat

Date: 2026-01-16

Price: $186.41

Type: Stock Specific

Confidence: high