Jim Cramer on Astera Labs: "It's Too Hot for Me"

Astera Labs, Inc. (NASDAQ:ALAB) is one of the stocks on Jim Cramer’s radar. A caller asked if they should buy, sell, or hold the stock, and Cramer replied:

“It’s too hot for me. It’s too hot for me…. I’ve gotta tell you, everything that you’re worried about, I’m worried about. I know it’s a straight-up stock. I’m willing to back Palantir as a straight-up stock. I can’t have two, more than one of these right now.”

Astera Labs, Inc. (NASDAQ:ALAB) develops semiconductor-based connectivity solutions for cloud and AI infrastructure. The company provides high-speed interconnect products, management software, and networking solutions for hyperscalers and OEMs. During a May episode, Cramer called it an “incredibly well-run” company, as he said:

“Okay, Astera Labs is a company that is incredibly well run, that has tremendous growth, but like many other companies, that stock has come down in value. I actually think it’s a good place to buy, given the fact that so many of these other stocks actually even have higher price-to-earnings multiples.”

While we acknowledge the potential of ALAB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.