Astera (ALAB) Extends Losses, Drops 19% on Cutthroat GPU Market

We recently published 10 Stocks Hammered Harder than Wall Street. Astera Labs Inc. (NASDAQ:ALAB) is one of the worst performers on Tuesday.

Astera Labs extended its losing streak to a third straight day on Tuesday, slashing 19.03 percent to close at $161.55 apiece amid cut-throat competition in the GPU market.

The drop followed Advanced Micro Devices’ partnership with Oracle for the deployment of 50,000 GPUs beginning in the third quarter of 2026, and expanding in 2027 onwards.

According to AMD, the partnership was aimed at capturing the growing demand for large-scale AI capacity as next-generation AI models outgrow the limits of current AI clusters.

The partnership was feared to potentially reduce demand for products by Astera Labs Inc. (NASDAQ:ALAB).

In other news, Astera Labs Inc. (NASDAQ:ALAB) announced on Tuesday that it joined forces with Arm Total Design for the development of chiplet solutions that meet the growing demand for custom AI infrastructure.

Chiplet architectures enable AI platform developers to combine diverse processing units—including Arm compute subsystems alongside memory, networking, and acceleration components—into unified systems optimized for different functions.

As a key design services partner in Arm Total Design, Astera Labs Inc. (NASDAQ:ALAB) will provide multi-protocol chiplet capabilities through its Intelligent Connectivity Platform, offering comprehensive PCIe, Ethernet, CXL, and UALink connectivity solutions that enable customers to build custom AI infrastructure with validated, interoperable connectivity from day one.

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