Astera Labs stock suffered a harsh reversal after the company published strong financial results that missed some analysts’ estimates. ALAB dropped to a low of $164 in the extended hours, down sharply from the all-time high of $262. As a result, the market capitalization dropped from over $42 billion in September last year to below $30 billion.

Astera Labs stock dips after earnings 

ALAB stock has done well in the past few months as the AI boom gained steam. It has jumped by over 390% from its lowest level in September 2024, making it one of the top gainers in Wall Street.

This growth happened because the company, which is backed by NVIDIA, is involved in the data center industry, where it offers rack-scale AI connectivity solutions…