These 29 AI Electricity, Infrastructure Stocks Are Crashing Due to DeepSeek News

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5. Astera Labs, Inc. (NASDAQ:ALAB)

Number of Hedge Fund Holders: 39

Share Price Decline: (22.43%)

Astera Labs, Inc. (NASDAQ:ALAB) is engaged in the design, manufacture, and selling of semiconductor-based connectivity solutions for cloud and AI infrastructure. DeepSeek’s low-cost approach hurt stocks such as Astera Labs, which tanked more than 20% following the AI frenzy. However, Northland Securities isn’t concerned about DeepSeek’s AI models just yet. The firm has stated that it doesn’t expect big tech giants such as Meta, Google, Amazon, and Microsoft to cut their capital expenditure forecasts when they report their earnings. This could act as a catalyst for Astera Labs. The firm upgraded Astera Labs to “Outperform” from Market Perform with a $120 price target following the DeepSeek news.

“ALAB shares have declined 38% since our downgrade based on the valuation on 1/2/25. Most of that decline occurred yesterday.” They further stated that “We do not expect AMZN, GOOG, META, and MSFT to cut capex when they report earnings over the next few weeks, acting as a catalyst for the shares.”

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