Jim Cramer on Astera Labs: "This Is Such a Red-Hot Stock, It's Incredible"

Astera Labs, Inc. (NASDAQ:ALAB) is one of the stocks on which Jim Cramer gave his opinions. Answering a caller’s query about the stock, Cramer said:

Oh my god, this is such a red-hot stock. It’s incredible. The price-to-earnings multiple is behind. I always look at it, I say, when is this stock going to come in for sale? And it really doesn’t, and that is because it’s a very good company.

Astera Labs, Inc. (NASDAQ:ALAB) develops semiconductor-based connectivity solutions and software for cloud and AI infrastructure. The company’s products include intelligent connectivity platforms, smart retimers, cable modules, memory controllers, and system management software. Artisan Partners stated the following regarding Astera Labs, Inc. (NASDAQ:ALAB) in its fourth quarter 2025 investor letter:

During the quarter, we initiated new positions in L3Harris, Astera Labs, Inc. (NASDAQ:ALAB) and Carvana. Astera Labs is a fabless provider of connectivity chips designed to address data, network and memory bandwidth bottlenecks in data centers. Modern GPUs and CPUs often can not operate at full performance due to limitations in how they connect to memory and networks, and Astera’s chips help remove these constraints to improve system efficiency. The company also enables communication across different types of chips, supporting the industry’s shift toward heterogeneous computing. With continued cloud growth and rising AI demand driving rapid data center expansion, we believe Astera has a strong long-term growth opportunity. We took advantage of a recent pullback to start a GardenSM position.

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.

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