New York, February 10, 2026, 14:07 EST — Regular session
- ALAB slipped roughly 1.3% in afternoon trading, following a strong surge on Monday
- On Monday, the company revealed a new Israel R&D design center dedicated to AI connectivity efforts
- Investors are gearing up ahead of Astera’s fourth-quarter results, which are set to drop after Tuesday’s close
Astera Labs shares slipped 1.3% to $185.16 in Tuesday afternoon trading, after earlier bouncing between $181.02 and $197.50. Investors seemed cautious about pushing the recent rally further, with the company’s quarterly earnings report set to drop later that day.
The stock retreated after climbing 10.5% on Monday, closing at $187.67, even as the broader market softened. On Tuesday, the Nasdaq dipped roughly 0.3%, while the S&P 500 edged down about 0.2%, per Investing data.
Timing is crucial here since Astera operates in a fiercely competitive AI-infrastructure market—where shifts happen fast, guidance missteps get hammered, and earnings often bring sharp surprises. Investors are eager to see if demand for the company’s connectivity chips is still ramping up amid heavy AI hardware spending by cloud providers.
Astera announced Monday the launch of a new R&D design center in Israel, targeting “scale-up fabrics”—the high-speed links that connect multiple processors within AI server racks. The move also focuses on tackling memory bottlenecks in AI training and inference. “We’re building an engineering team with a strong focus on execution,” said Guy Azrad, senior vice president of engineering and general manager of Astera Labs Israel. Ido Bukspan, vice president of ASIC engineering, described Israel as a longtime hub of “networking innovation.” (GlobeNewswire)
The chip sector showed a mixed bag on Tuesday. Nvidia slipped 0.4%, Broadcom dropped 0.6%, but Marvell inched up 0.2%. This points to investors focusing on individual company moves rather than the sector at large.
Investors are zeroing in on management’s take regarding the Scorpio X-Series rollout, a new move into “scale-up” switching that could boost revenue per system but also adds execution risk. They’re also hunting for clues about hyperscaler spending trends and whether Astera can maintain margins while scaling, Investing.com reported, highlighting the stock’s premium valuation and its 52-week range between $47.13 and $262.90. (Investing)
Astera laid out firm targets for the quarter. Back in November, it projected fourth-quarter revenue between $245 million and $253 million, with non-GAAP diluted EPS near $0.51. (ASTERA LABS, INC.)
The risk is straightforward: expectations have risen. Any miss, a cautious forecast, or hints of slower customer uptake might spark a sharper pullback following the stock’s recent jump.
Astera highlighted risks connected to its new Israel center, pointing to challenges in hiring and retention, potential delays or cost overruns in advanced R&D, as well as competitive pressures, regulatory hurdles, and geopolitical issues, per the company’s forward-looking statement. (Businessinsider)
Astera plans to unveil its fourth-quarter results after the market closes on Tuesday, followed by a conference call at 4:30 p.m. ET. The call will be led by CEO Jitendra Mohan, President and COO Sanjay Gajendra, and CFO Mike Tate, according to a Nasdaq filing. (Nasdaq)
