Astera Labs Stock Loses Steam On Reportedly Missing Out On Supplying Retimers For Nvidia's Next-Gen Blackwell Chip: Retail's Bearish

This comes days after Raymond James analysts gave the company’s stock a thumbs-up. They initiated coverage with an ‘Outperform’ rating and a price target of $82.

Shares of Astera Labs Inc. (ALAB) shed their intraday gains of nearly 2.5% on Wednesday to end the day flat after a report suggested that Nvidia Corp.’s (NVDA) next-generation artificial intelligence (AI) chip will not feature Astera’s retimers.

A report by SemiAnalysis has revealed that Nvidia’s Blackwell Ultra B300 chip will not use Astera Labs’ retimers out of the box.

It added that some hyperscalers could still choose to use Peripheral Component Interconnect Express (PCIe) retimer switches, but it’s unclear how many will opt for it.

Nvidia unveiled Blackwell Ultra B300 along with an open-source foundational model for humanoid robots to new graphics processing units (GPU), and more at the ongoing GTC 2025 event.

This comes days after Raymond James analysts gave the company’s stock a thumbs-up. They initiated coverage with an ‘Outperform’ rating and a price target of $82.

In a recent research note to clients, Raymond James said that Astera Labs is well-positioned to benefit from the generative AI “megatrend.”

The company is among the leading manufacturers in the $2 billion-worth PCIe retimer market.

Retail sentiment on Stocktwits around the Astera Labs stock was in the ‘bearish’ (42/100) territory at the time of writing.

Reacting to this news, one bearish user quipped with a graphic of a falling train.

Astera Labs’ stock is down 48% year-to-date.

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