Three Tech Stocks Poised for Growth in AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Astera Labs Financial Surge: Astera Labs reported a 93% year-over-year revenue increase to $308.4 million in Q1 2026, with adjusted EPS rising 84.8% to $0.61, indicating strong demand and market positioning in AI infrastructure.
- Marvell Growth Outlook: Marvell expects fiscal 2027 revenue to grow over 30% year-over-year to nearly $11 billion, with a further 40% increase projected for fiscal 2028, highlighting its robust growth potential in custom AI chips and optical interconnect technologies.
- Credo Revenue Boom: Credo's revenue surged 201% year-over-year to $407 million in Q3 2026, with Q4 guidance between $425 million and $435 million, showcasing rapid expansion in the AI connectivity solutions market.
- Industry Consolidation and Risks: Credo is enhancing its optical networking capabilities through the acquisition of DustPhotonics, and despite facing high customer concentration risk (with top three customers accounting for 88% of revenue), it could achieve significant growth if it successfully transitions into a broader AI connectivity platform.
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Analyst Views on ALAB
Wall Street analysts forecast ALAB stock price to fall
19 Analyst Rating
14 Buy
5 Hold
0 Sell
Moderate Buy
Current: 325.330
Low
155.00
Averages
206.18
High
250.00
Current: 325.330
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.
Astera Labs to Showcase Latest AI Infrastructure at Computex 2026
- Event Highlights: Astera Labs will showcase its latest AI connectivity solutions at Computex 2026, including the first public demonstration of the Scorpio™ X-Series 320 Lane Smart Fabric Switch, aimed at enhancing connectivity efficiency and performance in AI infrastructure.
- Technical Talk Schedule: On June 3, executives from Astera Labs will share insights during technical discussions on the evolving boundary of copper and optical technologies, next-gen retimers for AI systems, and optimizing inference tokenomics with KV cache, showcasing the company's technological leadership in the industry.
- Accelerating Customer Journey: By demonstrating active electrical cables and 200G/lane technology, Astera Labs will emphasize how it accelerates the customer journey from bring-up to deployment, ensuring efficient interoperability and performance testing to meet the market's demand for high-performance AI infrastructure.
- Industry Collaboration Opportunities: The event provides media and industry analysts direct access to Astera Labs' leadership, aiming to drive rapid deployment of AI infrastructure through technical demonstrations and ecosystem conversations, further solidifying Astera Labs' competitive advantage in the market.
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- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, helping to assess price trends and potential buy or sell opportunities, thereby optimizing investment decisions.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, reflecting market liquidity and investor sentiment changes.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights those experiencing notable inflows (new units created) or outflows (old units destroyed), which can impact the performance of individual stocks held within these ETFs.
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Three Tech Stocks Poised for Growth in AI Infrastructure
- Astera Labs Financial Surge: Astera Labs reported a 93% year-over-year revenue increase to $308.4 million in Q1 2026, with adjusted EPS rising 84.8% to $0.61, indicating strong demand and market positioning in AI infrastructure.
- Marvell Growth Outlook: Marvell expects fiscal 2027 revenue to grow over 30% year-over-year to nearly $11 billion, with a further 40% increase projected for fiscal 2028, highlighting its robust growth potential in custom AI chips and optical interconnect technologies.
- Credo Revenue Boom: Credo's revenue surged 201% year-over-year to $407 million in Q3 2026, with Q4 guidance between $425 million and $435 million, showcasing rapid expansion in the AI connectivity solutions market.
- Industry Consolidation and Risks: Credo is enhancing its optical networking capabilities through the acquisition of DustPhotonics, and despite facing high customer concentration risk (with top three customers accounting for 88% of revenue), it could achieve significant growth if it successfully transitions into a broader AI connectivity platform.
See More
AI Infrastructure Drives Surge in Related Stocks
- Astera Labs Growth Momentum: Astera Labs reported a 93% year-over-year revenue surge to $308.4 million in Q1, with adjusted EPS rising 84.8% to $0.61, and expects Q2 revenue to increase by 15% to 18% sequentially, indicating strong demand and market positioning in AI infrastructure.
- Marvell Technology Outlook: Marvell anticipates a more than 30% year-over-year revenue growth to nearly $11 billion in fiscal 2027, with a further 40% increase projected for fiscal 2028, showcasing robust growth potential in custom AI chips and high-speed connectivity markets.
- Credo Technology Expansion: Credo's revenue surged 201% year-over-year to $407 million in Q3 of fiscal 2026, with Q4 revenue guidance between $425 million and $435 million, reflecting ongoing demand and market expansion in cloud AI infrastructure.
- Investor Confidence Boost: Nvidia's $2 billion investment in Marvell underscores its strategic value in AI infrastructure, and as demand for efficient connectivity technologies rises, related stocks may experience significant upward momentum.
See More
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- SpaceX Valuation Challenges: SpaceX is expected to debut with a valuation of $1.75 trillion, yet its nearly 100 price-to-sales ratio significantly exceeds AI giant Nvidia's 24, indicating that high valuations may expose investors to greater risk of losses.
- Investor Participation Opportunities: Founder Elon Musk is making some shares available to retail investors through platforms like Robinhood and SoFi; however, Reuters' analysis suggests that investors buying on the first day of trading often face greater losses.
- Market Volatility and Returns: While AI-related companies like Astera Labs and Arm Holdings have shown impressive gains of 700% and 400% respectively, the disappointing performances of companies like Didi Global and Rivian Automotive illustrate the high uncertainty in the market.
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- Style Scoring System: The Zacks Style Scores rate stocks based on value, growth, and momentum, helping investors identify securities with the potential to outperform the market over the next 30 days, thus enhancing the scientific basis of investment decisions.
- Strong Earnings Outlook: Astera Labs (ALAB) holds a Zacks Rank of #3 and a VGM Score of B, with shares rising 44.2% over the past four weeks, while the fiscal 2026 earnings estimate has been revised up to $2.92 per share, indicating strong market potential.
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Astera Labs to Showcase Latest AI Infrastructure at Computex 2026
- Event Highlights: Astera Labs will showcase its latest AI connectivity solutions at Computex 2026, including the first public demonstration of the Scorpio™ X-Series 320 Lane Smart Fabric Switch, aimed at enhancing connectivity efficiency and performance in AI infrastructure.
- Technical Talk Schedule: On June 3, executives from Astera Labs will share insights during technical discussions on the evolving boundary of copper and optical technologies, next-gen retimers for AI systems, and optimizing inference tokenomics with KV cache, showcasing the company's technological leadership in the industry.
- Accelerating Customer Journey: By demonstrating active electrical cables and 200G/lane technology, Astera Labs will emphasize how it accelerates the customer journey from bring-up to deployment, ensuring efficient interoperability and performance testing to meet the market's demand for high-performance AI infrastructure.
- Industry Collaboration Opportunities: The event provides media and industry analysts direct access to Astera Labs' leadership, aiming to drive rapid deployment of AI infrastructure through technical demonstrations and ecosystem conversations, further solidifying Astera Labs' competitive advantage in the market.
See More
XOVR Stock Price Analysis and ETF Dynamics
- Price Fluctuation Analysis: XOVR's 52-week low is $16.37 per share and high is $21.78, with the latest trade at $20.14, indicating significant price movement within this range, reflecting market interest and investor sentiment.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides valuable insights for investors, helping to assess price trends and potential buy or sell opportunities, thereby optimizing investment decisions.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, reflecting market liquidity and investor sentiment changes.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs highlights those experiencing notable inflows (new units created) or outflows (old units destroyed), which can impact the performance of individual stocks held within these ETFs.
See More
Three Tech Stocks Poised for Growth in AI Infrastructure
- Astera Labs Financial Surge: Astera Labs reported a 93% year-over-year revenue increase to $308.4 million in Q1 2026, with adjusted EPS rising 84.8% to $0.61, indicating strong demand and market positioning in AI infrastructure.
- Marvell Growth Outlook: Marvell expects fiscal 2027 revenue to grow over 30% year-over-year to nearly $11 billion, with a further 40% increase projected for fiscal 2028, highlighting its robust growth potential in custom AI chips and optical interconnect technologies.
- Credo Revenue Boom: Credo's revenue surged 201% year-over-year to $407 million in Q3 2026, with Q4 guidance between $425 million and $435 million, showcasing rapid expansion in the AI connectivity solutions market.
- Industry Consolidation and Risks: Credo is enhancing its optical networking capabilities through the acquisition of DustPhotonics, and despite facing high customer concentration risk (with top three customers accounting for 88% of revenue), it could achieve significant growth if it successfully transitions into a broader AI connectivity platform.
See More
AI Infrastructure Drives Surge in Related Stocks
- Astera Labs Growth Momentum: Astera Labs reported a 93% year-over-year revenue surge to $308.4 million in Q1, with adjusted EPS rising 84.8% to $0.61, and expects Q2 revenue to increase by 15% to 18% sequentially, indicating strong demand and market positioning in AI infrastructure.
- Marvell Technology Outlook: Marvell anticipates a more than 30% year-over-year revenue growth to nearly $11 billion in fiscal 2027, with a further 40% increase projected for fiscal 2028, showcasing robust growth potential in custom AI chips and high-speed connectivity markets.
- Credo Technology Expansion: Credo's revenue surged 201% year-over-year to $407 million in Q3 of fiscal 2026, with Q4 revenue guidance between $425 million and $435 million, reflecting ongoing demand and market expansion in cloud AI infrastructure.
- Investor Confidence Boost: Nvidia's $2 billion investment in Marvell underscores its strategic value in AI infrastructure, and as demand for efficient connectivity technologies rises, related stocks may experience significant upward momentum.
See More
Analysis of SpaceX IPO Prospects and Investment Risks
- IPO Market Performance: A Reuters analysis reveals that among the 50 highest-valued IPOs in the past five years, investors would have been better off investing in an S&P 500 index fund about two-thirds of the time, highlighting the investment risks associated with IPOs.
- SpaceX Valuation Challenges: SpaceX is expected to debut with a valuation of $1.75 trillion, yet its nearly 100 price-to-sales ratio significantly exceeds AI giant Nvidia's 24, indicating that high valuations may expose investors to greater risk of losses.
- Investor Participation Opportunities: Founder Elon Musk is making some shares available to retail investors through platforms like Robinhood and SoFi; however, Reuters' analysis suggests that investors buying on the first day of trading often face greater losses.
- Market Volatility and Returns: While AI-related companies like Astera Labs and Arm Holdings have shown impressive gains of 700% and 400% respectively, the disappointing performances of companies like Didi Global and Rivian Automotive illustrate the high uncertainty in the market.
See More
Zacks Premium Empowers Investors with Confidence
- Investor Confidence Boost: Zacks Premium offers daily updates on Zacks Rank and industry rankings, assisting investors in making informed choices among over 800 top-rated stocks, thereby enhancing confidence and market performance.
- Style Scoring System: The Zacks Style Scores rate stocks based on value, growth, and momentum, helping investors identify securities with the potential to outperform the market over the next 30 days, thus enhancing the scientific basis of investment decisions.
- Strong Earnings Outlook: Astera Labs (ALAB) holds a Zacks Rank of #3 and a VGM Score of B, with shares rising 44.2% over the past four weeks, while the fiscal 2026 earnings estimate has been revised up to $2.92 per share, indicating strong market potential.
- Curated Investment Recommendations: Zacks experts recommend 7 stocks expected to perform well in the next 30 days, including one targeting millennial and Gen Z audiences that generated nearly $1 billion in revenue last quarter, highlighting its market appeal and growth potential.
See More
