Astera Labs Stock Plummets 19% Amid AI Market Jitters Triggered by AMD-Oracle Deal
Astera Labs (ALAB) shares tumbled 19% following Advanced Micro Devices' (AMD) announcement of a major GPU deployment deal with Oracle (ORCL). The partnership, set to deliver 50,000 GPUs starting H2 2026, sparked investor concerns about reduced demand for Astera's connectivity chips in cloud and AI systems.
The semiconductor company specializes in high-speed data links between CPUs, GPUs, and memory using PCIe, CXL, and Ethernet technologies. Market fears echo previous warnings from Morgan Stanley about Nvidia's NVLink potentially displacing traditional PCIe connections.
Investors now question whether deepening partnerships between chipmakers and cloud providers will marginalize independent hardware suppliers. The selloff reflects growing anxiety about shifting industry alliances in the AI infrastructure space.
