AI Trade Winners and Losers: Credo, Astera Labs, Snowflake, CloudFlare, and Palantier Analyzed.

The article discusses the AI trade, with some winners and losers. Credo and Astera Labs are mentioned as newer companies entering new products and areas, while Snowflake and CloudFlare are highlighted as platforms that companies can use to build AI tools. The speaker notes that they own Snowflake but do not own Palantier, citing a high price-to-earnings ratio as the reason.

The AI trade has seen a shift in investor sentiment, with Goldman Sachs sounding an early alarm on the near-term direction of hot AI stocks. According to Goldman Sachs US equity strategist Ryan Hammond, investors are grappling with whether AI is a threat or opportunity for many companies. Hammond expects the AI trade to transition to Phase 3, but investors will likely require evidence of a tangible impact on near-term earnings to embrace these stocks [1].

The AI trade has seen both winners and losers in recent weeks. Companies like Nvidia (NVDA) and Salesforce (CRM) have faced investor scrutiny following their earnings reports, which failed to meet expectations. Meanwhile, AI-focused companies like Astera Labs (ALAB) and Credo are emerging as new players in the AI infrastructure market [2][3].

Astera Labs, a key enabler of AI infrastructure, has seen impressive growth in its revenue and profitability. In Q2 2025, the company reported a 150% year-over-year increase in revenue, driven by its strategic partnerships with Alchip, NVIDIA, and AMD. Astera's Scorpio Fabric Switches have contributed significantly to its growth, enabling seamless data movement across CPUs, GPUs, and memory [3].

Credo is another newcomer in the AI space, focusing on building AI tools using platforms like Snowflake and Cloudflare. While Credo has not yet released financial results, its strategic positioning in the AI infrastructure market suggests it could be a promising player in the future [2].

Snowflake and Cloudflare are platforms that companies can use to build AI tools. Snowflake, in particular, has seen strong adoption in the AI space due to its ability to handle large datasets and provide scalable data warehousing solutions. However, the speaker notes that they own Snowflake but do not own Palantir (PLTR), citing a high price-to-earnings ratio as the reason [1].

The AI trade remains volatile, with valuations concerns and earnings expectations playing a significant role in investor sentiment. As the market awaits more concrete evidence of AI's impact on earnings, companies like Astera Labs and Credo are positioning themselves to capitalize on the AI infrastructure revolution.

References:
[1] https://finance.yahoo.com/news/goldman-sachs-issues-a-warning-to-ai-stock-investors-103249786.html
[2] https://finance.yahoo.com/news/ai-booms-latest-job-winners-043951784.html
[3] https://www.ainvest.com/news/astera-labs-alab-high-conviction-buy-connectivity-backbone-ai-infrastructure-revolution-2509/