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Astera Labs (ALAB) has established itself as a leading provider in next-generation data center connectivity with a complete suite of PCIe 6.0 solutions, including retimers, gearboxes, and switches. Its Aries 6 Smart Gearbox bridges PCIe 5.0 and 6.0 for hyperscale systems. The company is also collaborating with Wistron on NVIDIA’s Blackwell-based MGX systems to enhance AI server capabilities.
Astera’s Scorpio P- and X-Series Smart Fabric Switches, currently in preproduction, are designed for both scale-up and modular AI topologies. The company’s products, including its Leo CXL controllers, have seen increasing demand, reflecting growth in both CXL 3.0 and advanced Ethernet connections. Over the past year, ALAB’s stock has risen by 46.4%, outperforming the industry average growth of 37.4% and the broader S&P 500’s gain of 12.5%.
Currently, ALAB trades at a forward 12-month price-to-sales ratio of 18.93X, slightly below its one-year median of 20.01X, though it remains overvalued compared to its industry peers. Astera Labs holds a Zacks Rank #2 (Buy).
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