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Astera Labs Inc. (NASDAQ:ALAB) is one of the 10 Stocks Investors Are Running Away From.

Astera Labs fell for a second day on Tuesday, losing 12.33 percent to finish at $362.05 apiece, as investor sentiment was primarily dampened by the re-escalating tensions between the US and Iran.

In a social media post over the weekend, President Donald Trump announced that he had reinstated a blockade on Iran in the Strait of Hormuz.

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Stock market data. Photo by Alesia Kozik on Pexels

The announcement heavily dampened investor sentiment despite Trump’s clarification that cargoes from other countries will be able to pass through the Strait freely and safely.

Wall Street’s three major indices all finished in the red, led by the Nasdaq, down 1.55 percent, followed by the S&P 500, losing 0.79 percent, and the Dow Jones, shedding 0.26 percent.

Meanwhile, the decline can also be attributed to profit-taking following Astera Labs Inc.’s (NASDAQ:ALAB) surge late last month over its addition to the Nasdaq-100 index effective on June 22.

Astera Labs Inc. (NASDAQ:ALAB) is set to announce the results of its earnings performance in the second quarter after market close on August 4, 2026. A conference call will be held to elaborate on the results.

For the period, the company is targeting to generate revenues between $355 million and $365 million, or an implied growth of 15 to 18 percent from the $308.4 million posted in the same period last year.

While we acknowledge the risk and potential of ALAB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALAB and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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