Astera Labs shares rebound intraday 5.53% as Mizuho cites Amazon-Nvidia NVLink partnership addressing prior profit-taking sell-off.

Astera Labs (ALAB) surged 5.53% intraday following positive analyst sentiment and strategic partnership developments. The rebound came after a prior 13.5% drop attributed to profit-taking and market concerns over Amazon’s NVLink integration with Trainium4. Mizuho analysts highlighted the drop as an over-reaction, emphasizing that the partnership with NVIDIA is additive for Astera’s dollar content in Amazon’s AI infrastructure. Management clarified that UALink would remain a core option for Trainium4, alleviating fears of displacement by NVLink. This reassurance, combined with Astera’s expansion of photonic chiplet technology and custom connectivity solutions for AI infrastructure, fueled the intraday recovery. The stock’s upward movement aligns with analysts’ defense of its long-term potential in heterogeneous AI systems and cloud-scale connectivity.