We recently published a list of 15 Stocks That Took a Nosedive in January. In this article, we are going to take a look at where Astera Labs, Inc. (NASDAQ:ALAB) stands against other stocks that took a nosedive in January.
Historically, the S&P 500’s performance in January sets the pace for the rest of the year. According to Jared Blikre, Yahoo Finance Markets Editor, the S&P 500 returned nearly 17% in January, which is pretty impressive because a positive January usually translates as a positive year for the markets. Jared also added that while the energy and utilities sectors are lagging, the communication services and healthcare segments are showing signs of strength.
At the same time, while the S&P 500 remained positive at the end of January, some stocks declined due to various reasons especially the launch of the Chinese OpenAI rival, DeepSeek, and new regulations amid the new administration.
15 companies in diverse sectors such as the financials, biotechnology, healthcare, technology, and energy industries, declined due to unsupportive market conditions, macroeconomic environment, and other factors. That said, let’s take a look at the 15 stocks that took a nosedive in January.
To come up with the 15 names, we only considered stocks with a market capitalization of more than $2 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the 15 with the largest 30-day decline from January 3, 2024, to February 3, 2025.
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Astera Labs, Inc. (NASDAQ:ALAB)
30-day Decline as of February 3, 2025: 34.6%
Astera Labs, Inc. (NASDAQ:ALAB) is a purpose-built connectivity lab for AI and cloud infrastructure. The company designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI.
Based in California, the company saw a 34.6% decline in the past 30 days, going from $140.93 on January 3, to $92.11 on February 3. ALAB also saw a steep decline between January 24 and January 27, declining to $83.16 from $115.55.
Astera Labs, Inc. (NASDAQ:ALAB) saw a steep decline in its share price after the launch of OpenAI’s rival, DeepSeek, made an entry into the market. The Chinese AI startup shook the market, raising concerns over companies in the US pouring billions into AI.
However, at the same time, despite the decline, some analysts maintain a bullish outlook on the stock. For example, on January 28, analyst firm Northland, upgraded its rating on Astera Labs, Inc. (NASDAQ:ALAB) from market perform to outperform, with a price target of $120. The analyst firm emphasized that despite concerns about heavy spending in AI, BigTech is unlikely to cut costs, creating a solid opportunity for companies like ALAB.
Overall, ALAB ranks 3rd on our list of stocks that took a nosedive in January. While we acknowledge the potential of ALAB to grow, our conviction lies in the belief that certain 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
