Shares of Astera Labs (ALAB) are surging during its market debut, having even earned an endorsement from Nvidia's (NVDA) Jensen Huang, WSJ reported. According to Bloomberg, Astera's entry is the 4th largest listing in the US this year.

Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest developments for Astera Labs.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

JOSH LIPTON: Let's take a look at Astara labs, the public market debut for this chip connectivity company and it soars in its trading debut. Look at that move there. Its investors by the way, include Intel's venture arm, Sutter Hill ventures is its biggest shareholder. Bloomberg pointing out, this is the fourth largest listing in the US this year coming, of course, though just one day before high profile Reddit is expected to start trading.

Astara makes by the way semiconductor based products. They're used to build out cloud and AI infrastructure. As we know Julie investors are very hungry for ways to play AI and now some clearly believe they've found another one here.

JULIE HYMAN: Yeah. And I'm surprised that the stock gain that we saw today. When I checked earlier, it was up something like 55%. So obviously extended those gains before the end of the day, this-- first the Astara raised the range for the IPO on Monday, the 32 to $34. Then they actually priced at $36. Then they began trading at 52 to 56. So that gives you an idea of the demand that we saw.

Now we might see something quite different for Reddit which as we know its valuation has shrunk over the past couple of years in a different business clearly. But just interesting that this one snuck in there, Reddit, yeah maybe because it's a better known name if you will. But interesting to see this one--

JOSH LIPTON: Journal by the way also that NVIDIA CEO Jensen Huang provided an endorsement.

JULIE HYMAN: Yes.

JOSH LIPTON: And a star roadshow video pitch so--

JULIE HYMAN: Indeed.

JOSH LIPTON: --that also doesn't hurt.

JULIE HYMAN: No. It doesn't