Astera Labs Leads in PCIe 6.0 & AI Connectivity: More Upside Ahead?
Astera Labs ALAB is emerging as a key player in next-gen data center connectivity with a full-stack portfolio spanning PCIe 6.0, UA Link, and CXL 3.0. It is the first to market with a complete PCIe 6.0 solution set, including retimers, gearboxes, smart fabric switches, and optical modules. The Aries 6 Smart Gearbox acts as a bridge between PCIe 5.0 and 6.0, addressing speed mismatches in complex hyperscale systems.
Meanwhile, Scorpio P- and X-Series Smart Fabric Switches, now in preproduction, support both scale-up and modular scale-out AI topologies. Combined with Aries Retimers and the COSMOS software suite, the fabric switches deliver telemetry, diagnostics, and system-level optimizations for high-performance, low-latency AI infrastructure.
Astera Labs is advancing next-gen data center infrastructure through strategic OEM collaborations and a broad standards-based product lineup. Its work with Wistron on NVIDIA's NVDA Blackwell-based MGX systems showcases its role in enabling full PCIe 6.0 support for AI servers. As a key contributor to the UA Link Consortium, Astera is gaining early momentum with the UA Link 1.0 standard. Beyond AI, it's expanding into general-purpose compute with design wins in SSDs, NICs and CPUs. Adoption of its Leo CXL controllers and Taurus Ethernet modules reflects growing demand for CXL 3.0 and 400G/800G Ethernet.
Astera Labs leads with a full PCIe 6.0 portfolio comprising retimers, gearboxes, fabric switches, and optical modules tailored for hyperscaler AI clusters. Its Aries 6 Smart Gearbox bridges PCIe 5.0 and 6.0, while involvement in the UA Link Consortium strengthens its role in high-speed AI interconnects.
In comparison, Broadcom AVGO has launched its PCIe Gen 6 portfolio, featuring high-port switches and retimers tested for interoperability with partners like Micron and Teledyne LeCroy. Broadcom's Interop Development Platform (IDP) offers advanced telemetry and diagnostics, facilitating system design for AI infrastructure. Broadcom's in-house SerDes technology and collaboration with ecosystem partners aim to support scalable AI clusters.
Marvell Technology MRVL has expanded its connectivity offerings with the Alaska P PCIe retimer product line, built on 5nm PAM4 technology. These retimers, available in 8- and 16-lane configurations, are designed to scale connections between AI accelerators, GPUs and CPUs within servers. Marvell's focus on low power consumption and compatibility with PCIe Gen 6 and CXL standards addresses the needs of both AI and general-purpose server systems.
Astera Labs has rallied 46.4% in a year compared with the industry's 37.4% growth and the sector's 11.7% rise. The S&P 500 index, meanwhile, has improved 12.5% during the said period.
Image Source: Zacks Investment Research
Astera Labs is presently trading at a forward 12-month price-to-sales of 18.93X, which is below its 1-year median of 20.01X. However, it remains overvalued compared to the industry.
Image Source: Zacks Investment Research
ALAB currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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