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Broadcom's $73 billion AI order backlog makes it a more compelling investment than Astera Labs, despite Astera's stronger recent stock performance, with shares gaining 54.6% over the past six months.
The widespread build-out of AI infrastructure is fueling a secondary boom for specialized semiconductor companies that provide essential connectivity and manufacturing capabilities. Firms like Credo Technology, Lam Research, and TSMC are experiencing surging demand, though the sector also faces volatility and significant risks.
CoreWeave (CRWV) has secured a significant contract to provide AI cloud infrastructure for Runway’s next-generation video models. This deal reinforces the high-demand market for specialized AI cloud services built on advanced NVIDIA hardware, validating CoreWeave's strategic focus.
Astera Labs (ALAB) received a 'Buy' rating following a 40% stock price correction, as strong financial results and robust demand for AI data center hardware underscore its strategic position. The rating reflects a broader investor trend of favoring the essential 'picks and shovels' that power the AI ecosystem over high-valuation application-layer companies.