Astera Labs, Inc. (ALAB) shares plummeted 12.27% during intraday trading on Thursday, extending significant losses from the previous session.

The sharp decline comes as investors reassess the company's latest financial results despite an earnings beat. While Astera Labs reported better-than-expected fourth-quarter revenue and provided upbeat first-quarter guidance, the positive news has been overshadowed by profit-taking activity. The stock had surged more than 40% over the past year, leading to elevated valuations that prompted some investors to lock in gains.

Additional pressure stems from a leadership transition, with long-time Chief Financial Officer Mike Tate stepping down to become a strategic adviser. Desmond Lynch is set to assume the CFO role in early March. Broader concerns about profit margins and hardware mix, coupled with a cautious margin outlook from Cisco Systems that weighed on the technology sector, further contributed to the sell-off.