Astera Labs (NASDAQ: ALAB) stock plummeted 19.3% this week, impacted by widespread valuation concerns. While the S&P 500 and Nasdaq Composite saw smaller declines, investors became more risk-averse. Federal Reserve Chair Jerome Powell’s comments on stock valuations added to the sell-off trend. Despite the recent drop, Astera Labs’ share price is still up 49% in 2025. The company’s Q2 guidance suggests strong sales growth of around 83%. However, with a valuation at about 42 times expected sales, investing in Astera Labs comes with a high level of risk. The Motley Fool’s top 10 stock picks do not include Astera Labs.

Read more at Nasdaq: Why Astera Labs Stock Plummeted This Week