Astera Labs (ALAB) traded higher Wednesday, up roughly 4%, as the stock continued to ride a wave of bullish sentiment around AI data-center infrastructure suppliers. The latest catalyst is renewed analyst optimism after RBC lifted its price target to $250 (from $225) and reiterated an Outperform view, commentary that linked upside for Amazon-facing suppliers to Amazon’s accelerating AI push and its deal activity around Anthropic and Trainium capacity.

Astera sells connectivity chips and modules used in high-speed AI server and rack-scale deployments—spending categories that tend to rise when hyperscalers expand accelerator clusters. With investors focused on who benefits from the next leg of hyperscaler AI buildouts, ALAB has been trading as a high-beta proxy for incremental interconnect content as platforms scale and bandwidth requirements increase.

ALAB has already been on a sharp April run, and the stock’s continued climb suggests buyers are adding exposure on strength rather than waiting for the next company-specific earnings catalyst. Options activity has also been elevated versus recent averages, a setup that can amplify intraday swings when bullish positioning builds quickly.

Traders will be watching whether additional analyst notes follow the RBC move, and whether Amazon/hyperscaler AI infrastructure headlines keep lifting the broader AI connectivity complex. Any company updates on design wins, ramp timing for new products, or demand signals tied to next-generation AI clusters could further reinforce the current momentum trade.