RBC Capital raises Astera Labs price target to $250 from $225 on visibility from Amazon's Trainium3 AI chip expansion

On April 21, RBC Capital analyst Srini Pajjuri raised his price target on Astera Labs (NASDAQ:ALAB) to $250 from $225 while maintaining a Buy rating, citing stronger visibility into the company's growth from the expected boost in Amazon's use of Trainium3 AI chips.

Astera Labs supplies PCIe retimers (connectivity components that extend data transmission over longer distances), smart cable modules, and active electric cable modules to Amazon Web Services (AWS).

On April 20, Amazon announced it is deepening collaboration with Anthropic, with Anthropic committing to spend more than $100 billion over the next ten years on AWS technologies including current and future generations of Trainium and tens of millions of Graviton CPU cores.