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​Astera Labs, Inc. (NASDAQ:ALAB) is one of the Best Growth Stocks to Buy With Highest Upside Potential. On April 2, Citi lowered its price target on Astera Labs, Inc. (NASDAQ:ALAB) from $250 to $200, while maintaining a Buy rating on the stock. The firm cited that the reduced price target is due to the AI valuations. Moreover, Citi remains bullish on the company’s Scorpio opportunity and believes it remains intact. The firm also noted that Astera Labs stands to gain significantly from the expanding AI scale-up trend, positioning it as a prime beneficiary in AI infrastructure demand.

​The analysts explained in the research note that the shift to the PCIe switch business, especially the Scorpio family, will boost earnings significantly by 2028. Moreover, the co-packaged optics will complement rather than replace this core opportunity.

​Overall, the narrative around Astera Labs, Inc. (NASDAQ:ALAB) remains bullish as 78% of the 23 analysts covering the stock maintain a Buy rating. The average 12-month price target reflects more than 72% upside from the current level.

​Astera Labs, Inc. (NASDAQ:ALAB) provides high-performance connectivity solutions essential for AI data centers, including retimers, switches, and interconnect technologies. With increasing demand for efficient data movement in AI workloads, strong analyst support, and growing recognition as a core enabler of AI infrastructure, the company is well-positioned to deliver substantial long-term growth, supporting a high-upside investment thesis.

While we acknowledge the potential of ALAB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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