Astera Labs (ALAB) fell 4% after Democrats won control of Congress, dragging AI data-center stocks lower on fears of tighter rules, even though third-quarter revenue rose 154% year over year to $584.9 million, above the $550.8 million analysts expected. The company guided fourth-quarter revenue to $730 million to $750 million, with a midpoint 13% above the $656 million consensus. The article estimates 2026 adjusted EPS of about $4.37 if Astera reaches that midpoint, versus $4.03 on the chart. Before the report, ALAB traded at 41x forward earnings, its lowest point in the past year and well below its 72x average; at the current price, it is about 38x. The author believes estimates should rise while the multiple shrinks, but notes that Astera's top three end customers made up about 86% of 2025 revenue, so a slowdown at even one of them could hit the company quickly.
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