BofA lifts Astera Labs target to $450, Intel to $160 on AI spending visibility

Bank of America raised its price target for Astera Labs to $450 from $240 and for Intel to $160 from $135, citing extended AI spending visibility.

The investment firm said artificial intelligence-related spending visibility has extended into 2028, according to a Tuesday note from BofA Securities.

The new Astera Labs target implies an 87.5% increase from the prior $240 estimate, making it one of the most aggressive calls on the data center connectivity chipmaker. Intel's revised target of $160 reflects confidence in the company's foundry turnaround and AI processor roadmap, up from the previous $135 estimate.

The upgrades add to a growing wave of bullish semiconductor calls as hyperscaler capital spending on AI infrastructure shows no signs of slowing. Investors will watch for further target revisions across the sector as second-quarter earnings season approaches in July.

The moves follow a broader reassessment of semiconductor valuations as cloud providers and enterprise customers accelerate AI deployments. BofA's semiconductor team highlighted sustained demand for AI accelerators, networking chips and advanced packaging as key drivers behind the revised estimates, with data center spending expected to remain elevated through 2028.

Astera Labs, which makes connectivity solutions for AI data centers, has been a standout beneficiary of the infrastructure buildout since its public listing. Intel, meanwhile, is navigating a multiyear restructuring under Chief Executive Officer Pat Gelsinger, with its foundry services business seen as a critical swing factor for long-term profitability and market share recovery.

The upgrades come as the Philadelphia Semiconductor Index trades near record levels, with AI-related names commanding premium valuations relative to the broader market. BofA's call on Astera Labs represents one of the highest Street targets for the company, showing conviction that data center interconnect demand will remain strong through the current investment cycle.

For holders, the target revisions reinforce the view that AI infrastructure spending remains the dominant theme in semiconductors. The next catalyst for both stocks will be their respective quarterly earnings reports, where guidance will test whether Street estimates align with management's forward outlook.

This article is for informational purposes only and does not constitute investment advice.