Nvidia Supplier Astera Labs Jumps Over 15%—Here’s Why

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Aaron McDade
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Aaron McDade is a breaking news reporter for Investopedia. He is an experienced journalist who has covered everything from the latest in business and tech news to sports and international news like the war in Ukraine for respected outlets like Business Insider and Newsweek.
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Published October 09, 2024
04:23 PM EDT
Astera Labs logo shown on a smartphone and PC screen

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Key Takeaways

  • Astera Labs shares jumped over 15% Wednesday after the Nvidia supplier announced new products to power artificial intelligence (AI).
  • Astera introduced two new fabric switches that Nvidia said will help support its AI infrastructure.
  • With Wednesday's gains, Astera's stock has climbed about 70% from its initial public offering price in March.

Astera Labs (ALAB) shares jumped Wednesday after the Nvidia (NVDA) supplier announced new products to support artificial intelligence (AI).

The company introduced two new fabric switches that Nvidia Senior VP of GPU Engineering Brian Kelleher said will support the chipmaker's AI infrastructure "across a wide variety of AI and [high-performance computing] workloads."

Astera, which went public in March, said in its initial public offering (IPO) filing that its customers include several key players in the AI space such as Nvidia, as well as Advanced Micro Devices (AMD).

Jefferies analysts said the new products could help Astera diversify its offerings and expand the market for its products. The analysts held a "buy" rating for the stock, with a price target of $65, about 6% above Wednesday's closing price of $61.22.

Astera Labs shares surged over 15% Wednesday, and have gained about 70% from their IPO price in March.

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  1. Astera Labs. "Astera Labs Introduces New Portfolio of Fabric Switches Purpose-Built for AI Infrastructure at Cloud-Scale."

  2. Jefferies. "ALAB: Scorpio PCIe Launch Adds Another Major AI Leg to the Story."

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