Jim Cramer on Astera Labs: “It’s Too Hot for Me”

Astera Labs, Inc. (NASDAQ:ALAB) is one of the stocks on Jim Cramer’s radar. A caller asked if they should buy, sell, or hold the stock, and Cramer replied:

“It’s too hot for me. It’s too hot for me…. I’ve gotta tell you, everything that you’re worried about, I’m worried about. I know it’s a straight-up stock. I’m willing to back Palantir as a straight-up stock. I can’t have two, more than one of these right now.”

Jim Cramer on Astera Labs: "It’s Too Hot for Me"

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Astera Labs, Inc. (NASDAQ:ALAB) develops semiconductor-based connectivity solutions for cloud and AI infrastructure. The company provides high-speed interconnect products, management software, and networking solutions for hyperscalers and OEMs. During a May episode, Cramer called it an “incredibly well-run” company, as he said:

“Okay, Astera Labs is a company that is incredibly well run, that has tremendous growth, but like many other companies, that stock has come down in value. I actually think it’s a good place to buy, given the fact that so many of these other stocks actually even have higher price-to-earnings multiples.”

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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.