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Astera Labs (ALAB) and Cisco Systems (CSCO) are emerging as key players in the rapidly growing AI infrastructure market. Astera Labs reported third-quarter 2025 revenues of $230.6 million, a 20% increase sequentially and 104% year-over-year, while Cisco generated $14.9 billion in revenues in first-quarter fiscal 2026, rising 8% year-over-year. The AI infrastructure investment is expected to hit approximately $3 billion for Cisco in fiscal 2026, driven by strong demand from hyperscalers.
Astera Labs boasts a non-GAAP gross margin of 76% and a cash reserve of $1.13 billion, positioning itself for future growth as it expands its product offerings and customer base. Conversely, Cisco, while experiencing slower growth, is becoming a backbone for AI networking, seeing significant orders totaling $1.3 billion from hyperscalers in the most recent quarter.
In terms of stock performance, Astera Labs has seen a 48.4% increase over the past six months compared to Cisco’s 19.7%. The valuation for Astera Labs stands at a forward P/S multiple of 21.71, significantly higher than Cisco’s 4.94, reflecting its stronger growth trajectory.
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