Astera Labs' stock tumbles nearly 11%

Shares of Astera Labs (NASDAQ:ALAB) tumbled about 11% on Wednesday, and the company is potentially poised to shed about $4B in market cap.

Astera Labs — which develops semiconductor-based connectivity solutions for cloud and AI infrastructure — fell up to nearly 13% on Wednesday, its biggest intraday fall since April 4.

The stock has declined about 3% each day since Sept. 19, after Morgan Stanley said that Intel's (INTC) deal with Nvidia (NVDA) to co-develop PC and data center chips could have major implications for Astera, but it is unclear exactly what they are at this point.

As of the close on Sept. 23, Astera's stock has soared about 55% year-to-date, while in the past six months the shares have surged around 178%.

In the past one year, the stock has jumped about 300%.