Astera Labs (ALAB) will likely benefit partly from new product offerings and industry spending on artificial intelligence projects, Morgan Stanley said Monday in a report. Monday.

"Astera offers one of the best growth rates in our coverage, with multiple product cycles and a very strong position in key AI technology -- with visibility into multiple product cycles that have yet to even start to ramp," the report said. "We like the growth story, and valuation is attractive at this level."

Morgan Stanley upgraded Astera's stock to overweight from equal weight and kept the price target at $99.

"We strongly disagree with the concerns over possible AI digestion this year and believe there is too much pessimism," the report said. Astera "should continue to see strong growth across their multiple product families, which span the entire rack across all the major protocols," Morgan Stanley said.

Astera shares jumped 9.6% in recent trading Monday.

Price: 78.05, Change: +6.85, Percent Change: +9.62