Zacks Investment Ideas feature highlights: Astera Labs, Taiwan Semiconductor, Amazon, Microsoft, Meta Platforms and Alphabet

For Immediate ReleaseChicago, IL – September 5, 2025 – Today, Zacks Investment Ideas feature highlights Astera Labs ALAB, Taiwan Semiconductor TSM, Amazon AMZN, Microsoft MSFT, Meta Platforms META and Alphabet GOOGL.ALAB: Connecting the Future of AIAstera Labs: An Emerging AI LeaderZacks Rank #1 (Strong Buy) stock Astera Labs is a fabless semiconductor company that develops “purpose-built connectivity solutions for rack-scale AI and cloud infrastructure. In other words, they build the “nervous system” that allows powerful components in an AI server, like GPUs, CPUs, and memory, to communicate with each other effectively. ALAB operates a fabless business model, which means they focus on the design of the chip and software but outsource manufacturing to third-party chip makers like Taiwan Semiconductor.ALAB: Providing A Solution to AI ScalabilityAs investors have learned over the past few years, the demand for AI models and the components that ‘train them’ has grown exponentially. AI capital expenditure (CAPEX) spending among major tech companies like Amazon, Microsoft, Meta Platforms and Alphabet is expected to be in the $400 billion range for full-year 2025 as big tech juggernauts race to keep up with soaring demand for AI compute power.However, as data center size and complexity have exploded, these companies must move beyond single-server architecture. This is where ALAB comes in. Astera Labs technology is the new industry standard. The technology allows “rack-scale” AI, where multiple servers can act in concert, alleviating data transfer bottlenecks and producing rapid, efficient, and reliable connectivity.ALAB Earnings are ExplodingThe aforementioned growing speed requirements and system complexities of AI and cloud infrastructure bode well for Astera Labs. ALAB’s recent earnings history illustrates that the company has already emerged as a leader in next-generation data center connectivity. In fact, ALAB has beat Zacks Consensus EPS Estimates for four straight quarters, with a juicy beat margin of 32.2%.Meanwhile, Wall Street analysts believe that ALAB’s products will continue to be in high demand well into the future. Several analysts tracked by Zacks Investment Research have upped estimates over the past two months, and these analysts expect the company to grow full-year EPS by a robust 88.10% in 2025 and 24.14% in 2026.ALAB Technical View: Post-EPS Drift PotentialALAB’s price and volume action are jiving with its robust fundamental picture. ALAB shares bolted ~29% in early August after the company smashed Wall Street expectations. Additionally, volume increased 220% for the session, signaling heavy demand. Since then, ALAB shares have held gains, signaling that bulls are unwilling to part with shares.Bottom LineAstera Labs is uniquely positioned to capitalize on the explosive growth of AI infrastructure. With its groundbreaking technology, the company is addressing critical data bottlenecks inherent in next-generation data centers.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report Astera Labs, Inc. (ALAB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks