Jim Cramer says newly public Astera Labs is already too expensive

CNBC's Jim Cramer gave investors his take on the valuation of Astera Labs, a new initial public offering that soared when it hit the Nasdaq last week.

The hardware company's stock is currently too hot, he said, explaining that while Astera Labs may stand to benefit from the AI boom, it's still more expensive than it should be at this point., a company that went public last week and sells data center connectivity chips to cloud and artificial intelligence outfits. To Cramer, the stock debuted too hot and is more expensive than it should be at this point.

"While Astera Labs has a good story — and it is good, I think it'd be worth owning at some price — I think it's way too expensive at this price," he said., something very similar, for much, much cheaper? In the end, I don't want you paying up for these smaller AI plays when the most direct beneficiaries are far less expensive.", but Cramer found Astera Labs to be intriguing.

But Cramer took issue with one analyst who pointed to Astera Labs' earnings potential several years down the line, saying that it's too early to rely on projections so far in advance. "Even if we accept that Astera has the best connectivity technology, we don't know how protected they are from competition," he said."Who knows if somebody else will come up with something better a year or two down the road?"Cramer's Lighting Round: Arm is a buy

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