12:22 PM EDT, 09/04/2024 (MT Newswires) -- Astera Labs ( ALAB ) has a robust growth trajectory with an attractive entry point due to the recent stock pullback and multiple potential tailwinds, Morgan Stanley said in a note emailed Wednesday.

Tailwinds include "demand for artificial intelligence connectivity solutions, application-specific integrated circuit ramps, new products and broadening retimer applications," Morgan Stanley said.

Astera ( ALAB ) is expected to achieve over 50% growth in 2025 despite concerns over "less content in NVIDIA's ( NVDA ) rack-scale systems," the investment firm said.

Morgan Stanley said it expects Astera ( ALAB ) to trade at a premium due to its "unique" AI exposure.

Morgan Stanley upgraded Astera's ( ALAB ) rating to overweight from equalweight and kept the price target at $55.

Shares of the company were up 9.1% in recent trading.

Price: 42.66, Change: +3.55, Percent Change: +9.08