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Astera Labs Rides on Strong Scorpio Portfolio: What Lies Ahead?
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Key Takeaways
ALAB's Scorpio P-Series and X-Series accounted for over one-third of Q1 2026 revenues.
ALAB expects Scorpio to become its largest product line by the end of 2026 as volumes ramp.
ALAB shares are up 20.1% YTD but trade at a premium 19.54X forward P/S valuation.
Astera Labs (ALAB - Free Report) is seeing strong momentum from its Scorpio product lineup, which is becoming a major contributor to revenue growth as AI infrastructure spending increases. The Scorpio family, including the P-Series and X-Series products, is designed to support large-scale AI networking while addressing the growing complexity of AI data centers.
During the first quarter of 2026, PCIe Gen 6 products, which mainly include Scorpio P-Series and X-Series offerings, generated more than one-third of the company’s total revenues, making them the fastest-growing part of Astera Labs’ business. The company expects Scorpio to become its largest product category by the end of 2026, driven by increasing production volumes and customer deployments.
ALAB expects its growth to accelerate in the second half of 2026. The newly introduced Scorpio X-Series 320-lane switch has already entered early production shipments. Broader deployments of Scorpio P-Series products to multiple hyperscale customers are expected later this year and into 2027. The X-Series switch improves AI cluster performance through low-latency architecture, reduced communication hops, Hypercast and in-network compute capabilities, helping improve GPU efficiency.
Astera Labs is expanding the Scorpio roadmap with larger radix configurations, optical connectivity and enhanced compute features. Supported by its COSMOS software platform, the company aims to capitalize on the rapidly growing AI scale-up networking market, which it estimates could reach $20 billion by 2030. With increasing adoption across hyperscalers and AI deployments, Scorpio is expected to remain a key long-term growth driver for Astera Labs.
The company guidance and broader industry trends suggest that Scorpio will play a major role in Astera Labs’ expected second-quarter revenues of $355-$365 million, driven by continued growth in AI data center spending.
ALAB Faces Stiff Competition
ALAB is facing stiff competition from other industry players like Marvell Technology (MRVL - Free Report) and Credo Technology (CRDO - Free Report) . Both companies are making strong efforts in the connectivity space.
Marvell Technology’s expanding portfolio has been noteworthy. In March 2026, it announced the expansion of its multi-generational ZR/ZR+ and coherent DSP technology portfolio. Marvell Technology also introduced the industry’s first 1.6T ZR/ZR+ data center interconnect pluggable and 2nm coherent DSPs featuring media access control security to scale AI data center connectivity securely.
Credo Technology is expanding its portfolio through acquisitions. In March 2026, the company announced that it had acquired CoMira Solutions. This addition improves its portfolio with advanced link layer, error correction and security semiconductor IP to speed up next-generation AI connectivity solutions. This move boosts Credo Technology’s scale-up and scale-out architectures across protocols like Ethernet and PCIe. It expands its capabilities in high-performance computing, networking and energy-efficient data infrastructure.
ALAB shares have risen 20.1% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s growth of 16.7%. The Zacks Internet - Software industry has declined 13.3% in the same time frame.
ALAB Stock's Performance
Image Source: Zacks Investment Research
ALAB stock is trading at a premium, with a forward 12-month Price/Sales of 19.54X compared with the industry’s 3.75X. ALAB has a Value Score of F.
ALAB's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $2.44 per share, up 5 cents over the past 30 days. This suggests 32.61% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
Astera Labs Rides on Strong Scorpio Portfolio: What Lies Ahead?
Key Takeaways
Astera Labs (ALAB - Free Report) is seeing strong momentum from its Scorpio product lineup, which is becoming a major contributor to revenue growth as AI infrastructure spending increases. The Scorpio family, including the P-Series and X-Series products, is designed to support large-scale AI networking while addressing the growing complexity of AI data centers.
During the first quarter of 2026, PCIe Gen 6 products, which mainly include Scorpio P-Series and X-Series offerings, generated more than one-third of the company’s total revenues, making them the fastest-growing part of Astera Labs’ business. The company expects Scorpio to become its largest product category by the end of 2026, driven by increasing production volumes and customer deployments.
ALAB expects its growth to accelerate in the second half of 2026. The newly introduced Scorpio X-Series 320-lane switch has already entered early production shipments. Broader deployments of Scorpio P-Series products to multiple hyperscale customers are expected later this year and into 2027. The X-Series switch improves AI cluster performance through low-latency architecture, reduced communication hops, Hypercast and in-network compute capabilities, helping improve GPU efficiency.
Astera Labs is expanding the Scorpio roadmap with larger radix configurations, optical connectivity and enhanced compute features. Supported by its COSMOS software platform, the company aims to capitalize on the rapidly growing AI scale-up networking market, which it estimates could reach $20 billion by 2030. With increasing adoption across hyperscalers and AI deployments, Scorpio is expected to remain a key long-term growth driver for Astera Labs.
The company guidance and broader industry trends suggest that Scorpio will play a major role in Astera Labs’ expected second-quarter revenues of $355-$365 million, driven by continued growth in AI data center spending.
ALAB Faces Stiff Competition
ALAB is facing stiff competition from other industry players like Marvell Technology (MRVL - Free Report) and Credo Technology (CRDO - Free Report) . Both companies are making strong efforts in the connectivity space.
Marvell Technology’s expanding portfolio has been noteworthy. In March 2026, it announced the expansion of its multi-generational ZR/ZR+ and coherent DSP technology portfolio. Marvell Technology also introduced the industry’s first 1.6T ZR/ZR+ data center interconnect pluggable and 2nm coherent DSPs featuring media access control security to scale AI data center connectivity securely.
Credo Technology is expanding its portfolio through acquisitions. In March 2026, the company announced that it had acquired CoMira Solutions. This addition improves its portfolio with advanced link layer, error correction and security semiconductor IP to speed up next-generation AI connectivity solutions. This move boosts Credo Technology’s scale-up and scale-out architectures across protocols like Ethernet and PCIe. It expands its capabilities in high-performance computing, networking and energy-efficient data infrastructure.
ALAB’s Share Price Performance, Valuation & Estimates
ALAB shares have risen 20.1% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s growth of 16.7%. The Zacks Internet - Software industry has declined 13.3% in the same time frame.
ALAB Stock's Performance
Image Source: Zacks Investment Research
ALAB stock is trading at a premium, with a forward 12-month Price/Sales of 19.54X compared with the industry’s 3.75X. ALAB has a Value Score of F.
ALAB's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $2.44 per share, up 5 cents over the past 30 days. This suggests 32.61% year-over-year growth.
Astera Labs, Inc. Price and Consensus
Astera Labs, Inc. price-consensus-chart | Astera Labs, Inc. Quote
Astera Labs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.