Astera Labs (ALAB) shares have dropped 32.8% YTD, underperforming peers like Broadcom (AVGO) and Credo Technology (CRDO) which saw gains of 17.5% and 43.7% respectively. Stiff competition and tariff uncertainty have impacted ALAB’s performance.

Despite challenges, Astera Labs is expanding its portfolio with next-gen data center connectivity solutions. The company’s strong demand for product families like Aries and Taurus is expected to drive growth in the second quarter of 2025.

Astera Labs is benefiting from partnerships with industry leaders like NVIDIA and Micron, enhancing its reach into AI and cloud infrastructure markets. The company expects second-quarter revenues to increase between 7% and 10% year over year.

Astera Labs’ stock is trading at a premium with a Value Score of F. While the company’s innovative portfolio is promising, competition and valuation concerns remain. Investors are advised to wait for a better entry point before considering ALAB.

Read more at Nasdaq: Astera Labs Drops 33% Year to Date: Buy, Sell or Hold the Stock?