10 Stocks Hammered Harder than Wall Street

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1. Astera Labs Inc. (NASDAQ:ALAB)

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.

While we acknowledge the potential of ALAB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALAB and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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