BNP Paribas Remains Bullish on Astera Labs and Credo Technologies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Should l Buy ALAB?
Source: seekingalpha
- Market Outlook Positive: BNP Paribas analyst Karl Ackerman stated that despite growing concerns regarding co-packaged optics, he remains bullish on Astera Labs and Credo Technologies, believing that 224G/lane copper interconnects will have a long runway over the next 3-4 years, with technological advancements potentially extending copper's lifespan to 448G/lane.
- Technological Advancement Potential: Ackerman noted that while 448G/lane copper interconnects are becoming feasible, the demand for 224G/lane copper interconnects remains strong, indicating that concerns for interconnect providers are exaggerated and that significant growth potential exists in the coming years.
- Increased Appeal of Optical Interconnects: As technology progresses, especially in rack-to-rack communications, 448G/lane co-packaged optical I/O may become more attractive, providing new market opportunities for related technology companies and further driving industry innovation.
- Investor Focus: Astera Labs is viewed as a potential leader in the AI sector, with market reactions to its long-term investment opportunities being overly pessimistic, suggesting that current market fluctuations present a good opportunity for long-term investors and reflecting confidence in the company.
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Analyst Views on ALAB
Wall Street analysts forecast ALAB stock price to rise
19 Analyst Rating
14 Buy
5 Hold
0 Sell
Moderate Buy
Current: 119.200
Low
155.00
Averages
206.18
High
250.00
Current: 119.200
Low
155.00
Averages
206.18
High
250.00
About ALAB
Astera Labs, Inc. is a global semiconductor company. The Company provides semiconductor-based connectivity solutions for cloud and artificial intelligence (AI) infrastructure. It has developed and deployed its Intelligent Connectivity Platform built from the ground up for cloud and AI infrastructure. Its Intelligent Connectivity Platform provides its customers with the ability to deploy and operate high-performance cloud and AI infrastructure at scale, addressing an increasingly diverse set of requirements. It provides its connectivity products in various form factors, including Integrated Circuits (ICs), boards, and modules. Its PCIe, CXL and Ethernet semiconductor-based connectivity solutions are purpose-built to unleash the potential of accelerated computing at cloud-scale. The Company’s products include Aries products, which include its COSMOS software suite; Taurus products, which are hardware modules based on its Taurus ICs; Leo products; and Scorpio products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surging Oil Prices: WTI crude oil prices soared over 8% to a 19.5-month high, exacerbating inflation fears and pushing bond yields higher, with the 10-year T-note yield rising to 4.15%, marking a three-week high.
- Supportive Economic Data: Despite the pressure on stocks, initial jobless claims in the US were lower than expected, indicating a resilient labor market, while Q4 nonfarm productivity rose by 2.8%, surpassing the expected 1.9%, providing some support to the market.
- Optimistic Earnings Outlook: With over 90% of S&P 500 companies reporting earnings, 73% exceeded expectations, and Q4 earnings growth is projected at 8.4%, highlighting that corporate profitability remains a crucial factor supporting the stock market.
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- Market Positioning: Baruah emphasized that Astera Labs closely resembles a diversified AI-silicon pure play outside of Nvidia, addressing critical bottlenecks in AI servers and clusters, with solutions spanning nearly all major AI-silicon categories, including GPUs, Trainium, and TPUs.
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See More
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- Optimistic Earnings Outlook: With over 90% of S&P 500 companies reporting, 73% exceeded expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that may support a market rebound in the future.
- Escalating Geopolitical Risks: Iran has pledged to escalate retaliation, and the closure of the Strait of Hormuz has tightened global oil supplies, pushing prices higher and leading to more cautious economic growth expectations in the market.
See More
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See More
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- Geopolitical Tensions Affect Oil Supply: The closure of the Strait of Hormuz due to Iranian threats has tightened global oil and gas supplies, impacting production in Saudi Arabia and Iraq, which is expected to further elevate global fuel prices amidst rising geopolitical tensions.
See More
