While markets have been a bit jittery heading into the holidays, companies are generally bullish on the continued rollout of AI technologies into 2025. Billions continue to be invested in the hardware, software, and infrastructure needs for this trend.
Investors may have missed some early gains, but there’s still much more ahead. Especially as new generative AI models and even artificial general intelligence (AGI) comes into play. The infrastructure for those plays is still crucial.
That’s where chipmakers like Astera Labs (ALAB) come into play. Astera in particular serves hyperscalers and connectivity solutions for cloud and AI infrastructure , making it a clear winner as the AI rollout continues.
While Astera is shifting to AI production and is still moving towards profitability, revenues are soaring, up 206% over the past year. The market doesn’t mind for now, with shares up over 130% in the past year.
Action to take: Astera Labs is in a strong uptrend, and still has more room to run as newer AI models come online. That should allow this relatively small-cap player in the chipmaker space to continue growing by leaps and bounds in 2025 and beyond.
Astera shares look like an attractive momentum and growth play here.
For traders, the July 2025 $175 calls, last trading for about $17.50, could see mid-to-high double-digit returns on a further uptrend in Astera shares in the first half of 2025.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.