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Astera Labs’ shares are poised to soar after Advanced Micro Devices and OpenAI unveiled a multibillion-dollar AI infrastructure deal on Monday, according to Citi. The investment bank set a Street-high $275 price target on Astera Labs, implying almost 25% upside from Monday’s close, when the stock ran up 10%. Citi reiterated a buy recommendation on Astera, whose shares have nearly quadrupled in price over the past six months. Astera Labs is a Silicon Valley-based semiconductor maker that provides hardware and software for AI and cloud infrastructure applications. It will supply critical networking infrastructure for Advanced Micro Device’s Helios platform, slated to debut in 2026. ALAB 6M mountain Astera Labs has more than quadrupled in six months Due to its relationship with AMD, Astera is also poised to benefit from OpenAl’s agreement to deploy up to 6 gigawatts of AMD Instinct GPUs over several years, according to Citi analyst Atif Malik. “We see the news positively for ALAB as it is a leader in open AI networking ecosystems including UALink AMD is able to leverage in its Helios platform coming in 2026,” Malik wrote Monday in a note to clients. UALink is a low-latency, high-bandwith structure that connects accelerators and switches in AI computing pods, according to the UALink Consortium. The aim of the technology is to make AI training and inference more efficient and scalable . Astera is also likely to benefit from wider adoption of open rack-scale systems, putting it on track to rake in $1,000 per accelerator, according to Malik. Citi’s $275 price target on Astera is far above analysts’ average price target of $190, LSEG data shows. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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