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ALAB vs. APH: Which Connectivity Stock Is the Better Bet Today?
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Key Takeaways
Astera Labs is expanding its PCIe 6 portfolio to meet the growing demand for AI infrastructure.
Amphenol's liquid cooling connectors and interconnect products are fueling strong order growth.
APH's broad market reach and 79.3% YTD gain outpace ALAB amid tougher macro conditions.
Astera Labs (ALAB - Free Report) and Amphenol (APH - Free Report) are major players in the connectivity and data center infrastructure space. While Astera Labs develops semiconductor-based connectivity solutions tailored for cloud and AI infrastructure, Amphenol specializes in interconnect and sensor technologies across diverse industries.
Per a Grand View Research report, the data center infrastructure management market was valued at around $3.06 billion in 2024 and is expected to register a CAGR of 17.3% from 2025 to 2030. Both ALAB and APH are expected to benefit from the rapid growth pace.
So, ALAB or APH — Which of these Connectivity stocks has the greater upside potential? Let’s find out.
The Case for ALAB
Astera Labs is rapidly expanding its portfolio to address the growing demands of AI infrastructure and connectivity solutions. It benefits from strong demand for its PCIe solutions, which is noteworthy.
ALAB’s increasing demand for AI platforms, particularly those leveraging high-performance GPUs and AI accelerators, drove strong design wins and sales for products like Aries Retimers, Taurus Smart Cable Modules and Scorpio Fabric Switches.
Expanding portfolio has been noteworthy. In 2025, Astera Labs announced that its PCIe 6 connectivity portfolio is ramping production to fast-track the deployment of modern AI platforms at scale. The offerings include new Aries 6 PCIe Smart Gearbox, Scorpio P-Series Smart Fabric Switches, Aries 6 PCIe/CXL Smart DSP Retimers, Aries 6 PCIe/CXL Smart Cable Modules (Aries 6 SCMs) and PCIe 6 over Optics Technology.
ALAB expects accelerated shipments of Scorpio P-Series switches and Aries 6 retimers on a customized rack-scale AI platform based on market-leading GPUs to boost top-line growth. Scorpio revenues are expected to account for more than 10% of total revenues in 2025, while becoming the largest product line for Astera Labs over the next several years.
The Case for APH
Amphenol benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Strong demand for high-speed and power interconnect products, which are critical components in next-gen IT systems, creates a long-term growth opportunity.
The company’s expanding portfolio has been noteworthy. In June 2025, Amphenol launched its UQD and UQDB liquid cooling connector series, designed to enhance thermal management in high-reliability systems like AI data centers, EV charging infrastructure and energy storage. Both series meet Open Compute Project standards and feature corrosion-resistant materials, leak-free seals and tool-free integration for demanding liquid-cooled environments.
APH’s strong portfolio is helping drive order growth, which jumped 36% year over year and 4% sequentially to $5.523 billion, resulting in a book-to-bill ratio of 0.98:1 in the second quarter of 2025. Amphenol’s expanding portfolio of fiber optic, power, antenna and sensor technologies continues to gain traction across datacom, aerospace and defense markets.
Price Performance and Valuation of ALAB and APH
In the year-to-date period, ALAB and APH’s shares have gained 60.2% and 79.3%, respectively. The outperformance in Amphenol’s stock can be attributed to its robust and diversified portfolio.
Despite ALAB’s strong portfolio and expanding partner base, the company is suffering from challenging macroeconomic uncertainties and stiff competition.
ALAB and Amphenol Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, ALAB and APH shares are currently overvalued as suggested by a Value Score of D and F, respectively.
In terms of forward 12-month Price/Sales, ALAB shares are trading at 37.34X, higher than Amphenol’s 6.56X.
ALAB and Amphenol Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for ALAB & APH?
The Zacks Consensus Estimate for ALAB’s 2025 earnings is currently pegged at $1.58 per share, which has remained unchanged over the past 30 days, indicating an 88.10% year-over-year rise.
The Zacks Consensus Estimate for Amphenol’s 2025 earnings is currently pegged at $3.03 per share, which has increased by a penny over the past 30 days, indicating a 60.32% year-over-year rise.
While both ALAB and Amphenol are well-positioned to capitalize on the booming connectivity and data center infrastructure space, APH appears to be the stronger bet given its diversified revenue streams, strong order growth and broader market exposure.
Macroeconomic challenges, including higher tariffs and uncertainty over trade policy, are a headwind for semiconductor companies, including Astera Labs. These, along with changing export restrictions, are expected to negatively impact demand across the AI and cloud infrastructure markets.
Image: Bigstock
ALAB vs. APH: Which Connectivity Stock Is the Better Bet Today?
Key Takeaways
Astera Labs (ALAB - Free Report) and Amphenol (APH - Free Report) are major players in the connectivity and data center infrastructure space. While Astera Labs develops semiconductor-based connectivity solutions tailored for cloud and AI infrastructure, Amphenol specializes in interconnect and sensor technologies across diverse industries.
Per a Grand View Research report, the data center infrastructure management market was valued at around $3.06 billion in 2024 and is expected to register a CAGR of 17.3% from 2025 to 2030. Both ALAB and APH are expected to benefit from the rapid growth pace.
So, ALAB or APH — Which of these Connectivity stocks has the greater upside potential? Let’s find out.
The Case for ALAB
Astera Labs is rapidly expanding its portfolio to address the growing demands of AI infrastructure and connectivity solutions. It benefits from strong demand for its PCIe solutions, which is noteworthy.
ALAB’s increasing demand for AI platforms, particularly those leveraging high-performance GPUs and AI accelerators, drove strong design wins and sales for products like Aries Retimers, Taurus Smart Cable Modules and Scorpio Fabric Switches.
Expanding portfolio has been noteworthy. In 2025, Astera Labs announced that its PCIe 6 connectivity portfolio is ramping production to fast-track the deployment of modern AI platforms at scale. The offerings include new Aries 6 PCIe Smart Gearbox, Scorpio P-Series Smart Fabric Switches, Aries 6 PCIe/CXL Smart DSP Retimers, Aries 6 PCIe/CXL Smart Cable Modules (Aries 6 SCMs) and PCIe 6 over Optics Technology.
ALAB expects accelerated shipments of Scorpio P-Series switches and Aries 6 retimers on a customized rack-scale AI platform based on market-leading GPUs to boost top-line growth. Scorpio revenues are expected to account for more than 10% of total revenues in 2025, while becoming the largest product line for Astera Labs over the next several years.
The Case for APH
Amphenol benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Strong demand for high-speed and power interconnect products, which are critical components in next-gen IT systems, creates a long-term growth opportunity.
The company’s expanding portfolio has been noteworthy. In June 2025, Amphenol launched its UQD and UQDB liquid cooling connector series, designed to enhance thermal management in high-reliability systems like AI data centers, EV charging infrastructure and energy storage. Both series meet Open Compute Project standards and feature corrosion-resistant materials, leak-free seals and tool-free integration for demanding liquid-cooled environments.
APH’s strong portfolio is helping drive order growth, which jumped 36% year over year and 4% sequentially to $5.523 billion, resulting in a book-to-bill ratio of 0.98:1 in the second quarter of 2025. Amphenol’s expanding portfolio of fiber optic, power, antenna and sensor technologies continues to gain traction across datacom, aerospace and defense markets.
Price Performance and Valuation of ALAB and APH
In the year-to-date period, ALAB and APH’s shares have gained 60.2% and 79.3%, respectively. The outperformance in Amphenol’s stock can be attributed to its robust and diversified portfolio.
Despite ALAB’s strong portfolio and expanding partner base, the company is suffering from challenging macroeconomic uncertainties and stiff competition.
ALAB and Amphenol Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, ALAB and APH shares are currently overvalued as suggested by a Value Score of D and F, respectively.
In terms of forward 12-month Price/Sales, ALAB shares are trading at 37.34X, higher than Amphenol’s 6.56X.
ALAB and Amphenol Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for ALAB & APH?
The Zacks Consensus Estimate for ALAB’s 2025 earnings is currently pegged at $1.58 per share, which has remained unchanged over the past 30 days, indicating an 88.10% year-over-year rise.
Astera Labs, Inc. Price and Consensus
Astera Labs, Inc. price-consensus-chart | Astera Labs, Inc. Quote
The Zacks Consensus Estimate for Amphenol’s 2025 earnings is currently pegged at $3.03 per share, which has increased by a penny over the past 30 days, indicating a 60.32% year-over-year rise.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
Conclusion
While both ALAB and Amphenol are well-positioned to capitalize on the booming connectivity and data center infrastructure space, APH appears to be the stronger bet given its diversified revenue streams, strong order growth and broader market exposure.
Macroeconomic challenges, including higher tariffs and uncertainty over trade policy, are a headwind for semiconductor companies, including Astera Labs. These, along with changing export restrictions, are expected to negatively impact demand across the AI and cloud infrastructure markets.
Currently, Amphenol has a Zacks Rank #2 (Buy), making the stock a stronger pick than Astera Labs, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.