Astera Labs, Inc. (ALAB) surged 11.22% in intraday trading Tuesday, driven by a confluence of positive catalysts including a significant analyst upgrade and growing optimism around AI infrastructure demand.

The rally was fueled by Morgan Stanley, which sharply raised its price target on the stock to $335 from $240 while maintaining an Overweight rating, citing the company's strong positioning in AI infrastructure growth. This follows a similar move by Barclays, which had previously lifted its target to $325, reflecting a broader institutional consensus favoring the high-speed connectivity chip segment as AI compute expansion drives sustained demand.

Investors also positioned ahead of the company's second-quarter earnings report scheduled for release after the close, with consensus EPS estimates at $0.42. The move represents a sharp reversal from the prior session's 5.85% decline, suggesting an oversold bounce amplified by the bullish catalysts and broader semiconductor sector strength, which was further supported by reports of a potential U.S. ban on Chinese data center components that could benefit domestic connectivity suppliers.