Shares of Astera Labs, Inc. (ALAB) plunged over 5% in pre-market trading on Monday, following the company's third-quarter 2024 financial results that showed strong revenue growth but a significant widening of net losses due to heavy investments.

The fabless semiconductor company reported a net loss of $108.1 million, an increase of 166.2% year-over-year, despite revenue surging 291% to $255.2 million. The wider losses were mainly driven by a substantial increase in operating expenses, as the company ramped up investments in research and development, sales and marketing, and general and administrative functions.

While Astera Labs' revenue growth was impressive, with strong demand across all geographic segments and from major customers, the company's heavy cash burn and customer concentration risks raised concerns among investors. The company's current cash balance of $126.1 million could support only around three quarters of operations at the current quarterly net loss rate, potentially raising liquidity concerns in the near future.