Why Amazon’s $6.5 billion chip deal with Astera Labs is a ‘double-edged sword’



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For Astera Labs, landing a multibillion-dollar commitment from Amazon.com is a vote of confidence for its technology — but such a deal isn’t without its risks.

Shares of Astera Labs

ALAB tumbled 20.2% in recent trading on Wednesday morning, despite the company reporting higher-than-expected fourth-quarter revenue and earnings, as investors weighed concerns over margin compression, or lower profitability, and customer concentration.


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