20 Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy

10. Astera Labs, Inc. (NASDAQ:ALAB)

Short Float: 8.36%

Insider Transaction: -8.36%

Located in California, the semiconductor connectivity solutions provider Astera Labs, Inc. (NASDAQ:ALAB) specializes in intelligent data and memory connectivity for cloud and AI infrastructure. The company enables optimized performance for data-intensive applications by developing system-aware ASICs and IP for high-speed interconnects. Astera Labs, Inc. (NASDAQ:ALAB) leverages close collaboration with hyperscalers and OEMs to deliver customized solutions, achieving a competitive edge over its market peers. The company’s operations are aligned with an AI-based workload, which boosts its capabilities in the evolving cloud ecosystem. ALAB is among the stocks that insiders and short sellers are dumping.

Astera Labs, Inc. (NASDAQ:ALAB) recorded a significant revenue increase of 179% year-over-year in the fourth quarter of 2024. However, the product mix shift towards hardware-based solutions has led to a decline in non-GAAP gross margins to 74.1%. In Q1 of 2025, the company anticipates a growth in operating expenses resulting from R&D expansion. Since the company is heavily dependent on a small number of hyperscalers, it may also be potentially exposed to customer concentration risk. Furthermore, the new tariffs on Taiwanese imports could increase production costs, which would reduce the appeal of stocks to investors.

Despite its recent public debut, Astera Labs, Inc. (NASDAQ:ALAB)’s 8.36% short float reflects significant investor unease. Similarly, insider selling suggests equal hesitancy among internal stakeholders. Warranting caution, the company ranks among our large caps dumped by insiders and short sellers.