Astera Labs (ALAB) is among the best young stocks to buy, with strong revenue growth and potential.

From Yahoo Finance: 2025-05-13 17:30:00

Astera Labs, Inc. (NASDAQ:ALAB) is among the 11 best young stocks to buy according to hedge funds. NASDAQ CEO Adena Friedman reported 12.5% revenue growth in the quarter, with strong inflows into various index products. Astera saw a 144% increase in revenue in Q1 2025 and plans to launch Scorpio X-Series solutions.

Morgan Stanley upgraded Astera Labs to Overweight with a price target of $99, citing demand for connectivity solutions in the AI and cloud infrastructure market. Although ALAB ranks 9th on the list of best young stocks, analysts believe AI stocks offer high returns in a shorter timeframe. Pre-production shipments of the Scorpio X-Series are expected in late Q2 2025.



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