(Bloomberg) -- Reddit Inc. and Astera Labs Inc. have won over investors piling into anything with an artificial-intelligence flavor. Come Monday, analysts at the banks that helped take them public last month will get a shot at weighing in on whether their rallies are warranted.

Reddit shares have soared around 35% since the social media company’s initial public offering, while Astera, a semiconductor connectivity company focused on AI, has more than doubled, for the best US listing to raise more than $500 million this year. 

Monday marks the first business day after a customary 25-day quiet period for firms that participated in the IPOs, meaning investors are about to get a fresh batch of initiations from analysts at firms including Morgan Stanley and Deutsche Bank AG. Astera debuted March 20, a day before Reddit’s first session. 

Given the shares’ strong starts, investors will be eager to see if the big Wall Street firms will tout further gains. The reviews could provide a lift for the tech darlings, both of which have retreated from March highs, if analysts are bullish on two of the year’s top US new entrants. 

Analyst’s Sway

Last week showed how analysts have the ability to move shares with their coverage. Bernstein’s Mark Shmulik called Reddit an “institutional meme stock” and assigned it a $40 price target and an underperform rating, helping push shares to what at the time was their lowest close since the IPO. The shares last traded around $45.

“The headline optics aren’t pretty,” Shmulik wrote before lambasting Reddit’s unprofitable business and heavy executive selling in the IPO. He did, however, cite “compelling” near-term expectations with Reddit growing users and revenue.

Reddit, which raised $860 million, has split the four analysts tracked by Bloomberg, with none advising clients to buy. Hedgeye, which is known for recommending clients sell certain companies short, called it “grossly overvalued.” When the company was courting investors it touted the ability for customers to license data on the platform to train AI models.

Northland Securities is the lone firm covering Astera. The company builds products that enable the “mainstreaming” of AI and machine learning in the cloud, according to its website. Astera featured Nvidia’s Jensen Huang in its roadshow video and has seen its fortunes heavily tied to the booming AI trade.

Bankers have been pounding the table for a revival of IPOs after the pair delivered strong starts. The ability to pitch AI as a driver of growth has been paramount for Wall Street, with Monday marking an opportunity for analysts to better provide a road map for the technology’s role for Reddit and Astera.

Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Deutsche Bank, Mitsubishi UFJ Financial Group Inc. and nine other firms were underwriters on the sale of Reddit shares. 

Astera’s offering was led by Morgan Stanley and JPMorgan, with participation from Barclays Plc, Deutsche Bank, Evercore Inc. and Jefferies Financial Group Inc., as well as six other firms.

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