Astera Labs Leads in PCIe 6.0 & AI Connectivity: More Upside Ahead?
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Astera Labs, Inc. (ALAB) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Astera Labs, Inc. (ALAB) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Astera Labs, Inc. (ALAB) closed at $90.80, marking a +2.52% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.02%. Shares of the company have depreciated by 6.98% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.25%, and the S&P 500's gain of 4.99%. The investment community will be paying close attention to the earnings performance of Astera Labs, Inc. in its upcoming release. In that report, analysts expect Astera Labs, Inc. to post earnings of $0.33 per share. This would mark year-over-year growth of 153.85%. Meanwhile, our latest consensus estimate is calling for revenue of $172.71 million, up 124.74% from the prior-year quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of $1.35 per share and revenue of $702.43 million, which would represent changes of +60.71% and +77.25%, respectively, from the prior year. Investors should also pay attention to any latest changes in analyst estimates for Astera Labs, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Astera Labs, Inc. currently has a Zacks Rank of #2 (Buy). Looking at its valuation, Astera Labs, Inc. is holding a Forward P/E ratio of 65.45. This signifies a premium in comparison to the average Forward P/E of 28.74 for its industry. Meanwhile, ALAB's PEG ratio is currently 1.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.22 at yesterday's closing price. The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Will Arista's VeloCloud Buyout to Boost SD-WAN Unit Aid ANET Stock?
Arista Networks, Inc. ANET has acquired the VeloCloud SD-WAN portfolio from Broadcom Inc. (AVGO) for an undisclosed amount. The buyout has offered Arista complementary products and services with a production-proven SD-WAN architecture, a dedicated customer base of more than 20,000 and a seasoned sales channel. The acquisition will enable Arista to offer end-to-end networking solutions to a wider range of customers and augment its secure access service edge (SASE) networking gear, which supports remote workers and branch offices. VeloCloud has been part of Broadcom since the latter's purchase of VMware in 2023. However, Broadcom considered VeloCloud as a non-core business with low-value offerings, given its focus on cloud enablement and infrastructure. While losing its importance within the company, VeloCloud was also gradually losing market share, forcing Broadcom to consider options to divest it. This is where Arista came into the picture, snapping up a business that filled the void in its WAN Routing System to better compete with Cisco Systems, Inc. CSCO and Juniper Networks, Inc. AI offerings like VeloRAIN and VeloBrain, which use AI to improve the security and performance of distributed AI workloads and help network engineers better manage their environments, VeloCloud is a strategic fit for Arista's business. It delivers converged cloud networking from the edge to the data center and cloud, with end-to-end automation, application continuity and branch transformation, which empowers enterprises to transform their data centers with modern, high-performance operations. Arista continues to benefit from strong momentum and diversification across its top verticals and product lines, with an improved market demand supported by a flexible business model and solid cash flow. As more and more business enterprises transition to the cloud, the company is well-poised for growth in the data-driven cloud networking business with proactive platforms and predictive operations. The company holds a leadership position in the 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200-and 400-gig high-performance switching products. Additionally, Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. The company also innovates in areas such as deep packet buffers, embedded optics and reversible is witnessing solid demand trends among enterprise customers, backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. The versatility of Arista's unified software stack across various use cases, including WAN routing and campus and data center infrastructure, sets it apart from other competitors in the industry. This, in turn, has translated into solid revenue growth for the company over the years. Image Source: Zacks Investment Research Arista continues benefiting from the expanding cloud networking market, driven by strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and customers deploying transformative cloud networking solutions, the company has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. This supports video conferencing applications like Microsoft Teams and Zoom. Arista has surged 8.3% over the past year compared with the industry's growth of 39.7%, lagging peers like Juniper and Cisco. While Cisco gained 46.8%, Juniper was up 9.9% over this period. Image Source: Zacks Investment Research Earnings estimates for Arista for 2025 have moved up 11.3% to $2.57 over the past year, while the same for 2026 has increased 8.9% to $2.95. The positive estimate revision depicts optimism about the stock's growth potential. Image Source: Zacks Investment Research With solid fundamentals and healthy revenue-generating potential driven by robust demand trends, Arista appears to be a solid investment option. Further, a strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements through organic and inorganic growth are driving more value for customers. Steady improvement in lead times and easing of supply-chain woes are major tailwinds. The stock delivered a trailing four-quarter average earnings surprise of 11.8%. Arista currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks on a robust earnings surprise history and favorable Zacks Rank, it appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
7 hours ago
- Yahoo
Arista Networks (NYSE:ANET) Expands AI-Driven Product Line With Key Acquisitions And Upgrades
Arista Networks recently unveiled an array of AI-driven enterprise products alongside acquiring the VeloCloud SD-WAN portfolio from Broadcom. This strategic expansion could have supported the company's share price performance, which surged by 23% over the last quarter. During the same period, Arista appointed Todd Nightingale as President and COO, and initiated a substantial share buyback program. These events likely added weight to the broader upward market trend, driven by tech sector gains and overall economic optimism, exemplified by a 14% increase in the market over the past year. Every company has risks, and we've spotted 1 weakness for Arista Networks you should know about. This technology could replace computers: discover the 26 stocks are working to make quantum computing a reality. The recent developments at Arista Networks, including its AI product expansion and acquisition of the VeloCloud SD-WAN portfolio, have potential to impact the company's long-term narrative positively. These initiatives are aligned with the company's strategic focus on cloud and AI adoption, which could drive sustainable network growth and bolster Arista's revenue and earnings projections. The introduction of new leadership and a significant share buyback program could reinforce investor confidence, potentially leading to a more resilient financial performance. Over the past five years, Arista Networks has delivered a very large total return of 650.81%, underscoring its strong historical performance. In contrast, the company's recent performance in the past year didn't keep pace with the U.S. Communications industry's 42.9% rise, underperforming relative to both the industry and the broader market increase of 13.9%. This discrepancy highlights the importance of evaluating both short-term movements and longer-term trends. The integration of AI-driven products is anticipated to influence revenue and earnings growth positively. Analysts suggest that the growing demand for scalable Ethernet-based networking and the company's expansion into high-margin software services are key contributors to its future outlook. In the context of the price target, the current share price of US$94.97 reflects a discount to the consensus fair value estimate of US$105.64, indicating potential upside according to market analysts. However, variability among analyst opinions, with bullish targets as high as US$130, suggests ongoing debate about Arista's prospective valuation. Click here to discover the nuances of Arista Networks with our detailed analytical financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ANET. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
