# BMO Starts Astera Labs Coverage With Outperform Rating, $375 Target

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/50262
Published: 2026-11-06T18:13:16.000Z
Updated: 2026-11-06T18:13:16.000Z
Section: Investing

> The AI networking company’s shares fell nearly 30% over three months as semiconductor stocks retreated and concerns about the AI trade grew.

BMO Capital Markets opened coverage of Astera Labs with an Outperform rating and a $375 price target, adding a new analyst call on the AI networking company after a steep three-month share decline.

Astera shares had fallen nearly 30% over that period as investors rotated out of semiconductor stocks and raised concerns about the durability of the AI trade. The iShares Semiconductor ETF declined 15% over the same period.

BMO analyst Harsh Kumar described Astera as a critical player in AI networking. He said the growth of large AI clusters is increasing the network demands AI systems must meet. Astera’s Aries, Taurus, Leo and Scorpio product lines address networking and memory bottlenecks, with more than $1,000 in company content per GPU or XPU accelerator.

Kumar expects Astera’s longer-term work in optics, racks and custom semiconductor solutions to contribute more revenue over time. He also sees the company benefiting in the near term from higher product content in ongoing AI and cloud infrastructure deployments.