From Zacks Investment Research: 2025-06-27 16:12:00

Astera Labs (ALAB) has a first-mover advantage in PCIe 6.0 retimers and key product ramp-ups in late Q2 of 2025. ALAB’s rack-scale strategy and UALink plans target a multibillion-dollar AI infrastructure opportunity. ALAB posted a 33.7% adjusted operating margin and holds $925M in cash despite rising R&D spending. Astera Labs and Broadcom (AVGO) are rapidly gaining prominence in PCIe and CXL retimers for AI and cloud infrastructure. Astera Labs is set for an inflection in revenues and margin expansion, making it a compelling buy right now. ALAB has a Zacks Rank #2 (Buy) compared to AVGO’s Zacks Rank #3 (Hold), showing stronger potential for investors seeking targeted exposure to next-gen AI connectivity.



Read more at Zacks Investment Research: Astera Labs or Broadcom: Which Stock Leads in AI Infrastructure Now? – June 27, 2025