Was Jim Cramer Right About Astera Labs, Inc. (ALAB)?

We recently published a list of Was Jim Cramer Right About These 9 Stocks? In this article, we are going to take a look at where Astera Labs, Inc. (NASDAQ:ALAB) stands against other stocks that Jim Cramer discusses.

Back then, a viewer asked about Astera Labs, Inc. (NASDAQ:ALAB), which had recently IPO’d and was gaining attention at the time. Cramer liked the business fundamentals but warned that recent IPOs were still caught in speculative hype. He responded with:

“I like Astera Labs. It’s a little high… a lot of the newer companies that have come public are still involved in a halo. This one started to go down today… Let’s let it come in. There’s a little too much halo to the new IPOs… they are all trading at very high levels right now.”

Cramer was wrong to warn against the IPO-hype as the stock climbed an additional 55.56% since then.

Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor connectivity company that designs purpose-built chips and system-level solutions to accelerate data transfer between CPUs, GPUs, memory, and AI infrastructure components in data centers and cloud environments.

Astera had a bad start to the year. When asked about it on May 14, Cramer gave a mixed outlook saying it’s a good place to buy but not the best value out there:

“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.”

Overall, ALAB ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of ALAB as an investment, 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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

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