Here's Why Astera Labs (ALAB) is on Detectors' List of Polen U.S. SMID Cap Growth Strategy

Polen Capital, an investment management company, released its “Polen U.S. SMID Cap Growth Strategy” third-quarter 2025 investor letter.  A copy of the letter can be downloaded here. The strategy returned 14.8% gross and 14.4% net of fees in the quarter, compared to the Russell 2500 Growth Index return of 10.7%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Polen U.S. SMID Cap Growth Strategy highlighted stocks such as Astera Labs, Inc. (NASDAQ:ALAB). Astera Labs, Inc. (NASDAQ:ALAB) engages in the manufacturing of semiconductor-based connectivity solutions for cloud and AI infrastructure. The one-month return of Astera Labs, Inc. (NASDAQ:ALAB) was -16.73%, and its shares have appreciated by 32.14% over the past 52 weeks. On November 21, 2025, Astera Labs, Inc. (NASDAQ:ALAB) stock closed at $141.95 per share, with a market capitalization of $23.976 billion.

Polen U.S. SMID Cap Growth Strategy stated the following regarding Astera Labs, Inc. (NASDAQ:ALAB) in its third quarter 2025 investor letter:

"The most significant detractors from the Portfolio’s relative performance in the quarter were Grupo Financiero Galicia, Monday.com, and Astera Labs, Inc. (NASDAQ:ALAB) (not owned). Finally, not owning Astera Labs—up more than 100% during the quarter—represented another notable detractor to relative performance. Astera Labs is a maker of semiconductor-based connectivity solutions for cloud and AI infrastructure to improve data transfer and performance bottlenecks. During the quarter, the stock benefitted from a combination of better-than-expected earnings, strong guidance for 3Q25, and optimism around the company’s expanding strategic relationships."

Astera Labs, Inc. (NASDAQ:ALAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 56 hedge fund portfolios held Astera Labs, Inc. (NASDAQ:ALAB) at the end of the second quarter, up from 45 in the previous quarter. In Q3 2025, Astera Labs, Inc. (NASDAQ:ALAB) reported revenue of $230.6 million was up 20% from the prior quarter and 104% from Q3 2024. While we acknowledge the potential of Astera Labs, Inc. (NASDAQ: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.

In another article, we covered Astera Labs, Inc. (NASDAQ:ALAB) and shared Artisan Small Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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