A Seeking Alpha analyst initiated a Buy rating on Astera Labs, with a 12-month price target of $265.52. The stock fell 19.6% on November 5.
The analyst believes the market has already priced in a potential revenue stall in 2027. Consensus estimates appear to set a low bar for the company to outperform, creating a potential buying opportunity.
Thursday’s sharp sell-off was part of a broader downturn among chipmakers focused on AI data center connectivity. The decline followed reports that newly elected Democratic governors in Texas, Ohio, and Georgia—key states for data center development—are promising moratoriums on new construction, raising concerns about the sector.