Stifel maintains its Buy rating on Astera Labs (ALAB) after assessing that concerns over Nvidia and AWS dependencies are overstated, reinforcing confidence in the company’s AI infrastructure growth trajectory. The firm highlights ALAB’s diversified client base and strong revenue momentum.
- Stifel maintains a Buy rating on ALAB with no change in price target
- Revenue growth in Q3 2025 exceeded 60% year-over-year, driven by data center deployment
- ALAB’s AI connectivity solutions now ship to over 15 major cloud and enterprise customers
- Nvidia’s role in ALAB’s supply chain is estimated at under 30% of total revenue
- AWS accounts for approximately 25% of ALAB’s revenue, below the 40% threshold considered high risk
- Stifel notes ALAB’s strong margin expansion, with gross margins reaching 72% in Q3 2025
Stifel has reaffirmed its Buy rating on Astera Labs (ALAB), citing a misperception in the market regarding the company’s exposure to Nvidia and Amazon Web Services. Despite recent speculation about potential shifts in cloud and AI hardware partnerships, the firm argues that ALAB’s business model is resilient and not unduly reliant on any single vendor. The analysis points to Astera’s expanding presence across multiple hyperscalers and enterprise clients, reducing concentration risk.