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ALAB Expands PCIe Portfolio With Aries 7: Can it Beat MRVL & CRDO?

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Key Takeaways

  • Astera Labs launched Aries 7, expanding its PCIe portfolio across copper and optical interconnects.
  • ALAB's PCIe 6 products generated over 50% of second-quarter revenues, with Aries posting record sales.
  • ALAB expects third-quarter revenues of $540M-$560M, fueled by Scorpio, Aries and Taurus demand.

Astera Labs (ALAB - Free Report) is benefiting from growing demand for high-speed connectivity solutions across AI data centers and hyperscale infrastructure. The company’s expanding PCIe portfolio, particularly its latest Aries 7 launch, strengthens its competitive position against Marvell Technology (MRVL - Free Report) and Credo Technology (CRDO - Free Report) , both of which are targeting opportunities in AI networking and connectivity markets.

The company recently announced Aries 7, the industry’s first PCIe 7 signal-conditioning portfolio spanning copper and optical interconnects. The portfolio includes smart retimers, redrivers, cable modules, optical drivers and transimpedance amplifiers, supporting high-speed connectivity across multi-rack AI infrastructure. Integrated with the COSMOS software suite, Aries 7 enables advanced diagnostics, fleet management, and performance optimization. The solutions support connectivity distances exceeding 50 meters through optical cables. Astera Labs is collaborating with AMD and Intel to accelerate PCIe 7 adoption. Initial product sampling is expected to begin in the fourth quarter of 2026.

ALAB’s Aries portfolio is witnessing strong momentum. Aries delivered record second-quarter revenues, supported by the rising adoption of PCIe 6 retimers and gearboxes across scale-up and scale-out AI architectures. Larger accelerator clusters, higher unit attach rates, and increased average selling prices tied to the PCIe 6 transition are fueling growth. In the second quarter of 2026, PCIe 6 products, including the Scorpio AI Fabric Switches and Aries Retimers, accounted for more than 50% of total revenues, underscoring ALAB’s Gen 6 portfolio leadership.

Aster Labs’ strong demand for its Aries, Taurus and Scorpio product families is expected to help the company compete effectively with Marvell Technology and Credo Technology as hyperscalers increase spending on AI connectivity. For the third quarter of 2026, revenues are expected to be between $540 million and $560 million. The midpoint implies sequential growth of approximately 40%, driven by the Scorpio X-Series production ramp, continued Aries PCIe 6 retimer strength and preproduction Taurus shipments for 800-gigabit Ethernet applications.

How Competitors Fare Against ALAB

ALAB is facing stiff competition from other industry players, such as Marvell Technology and Credo Technology. Both companies are making strong efforts in the connectivity space.

Marvell Technology is benefiting from strong AI-related demand across MRVL’s data center portfolio, where the data center represented 79% of total revenues in the second quarter of fiscal 2027. This underscores the growing weight of connectivity, switching and custom silicon in the company’s sales mix. In the second quarter of fiscal 2027, Marvell Technology reported revenues of $2.74 billion, up 36.6% year over year.

Credo Technology’s expanding portfolio has been noteworthy. In August 2026, the company announced that the Toucan Gen6x16 PCIe retimer has achieved PCI-SIG 6.x compliance at 64.0 GT/s and joined the PCI-SIG Integrators List. The certification validates Toucan’s electrical performance, interoperability and PCIe 6.0 protocol capabilities, supporting reliable deployment across AI, high-performance computing, cloud and accelerated computing platforms. 

The retimer combines DSP-based SerDes technology, low-power operation and advanced diagnostics through Credo Technology’s PILOT software. The milestone is expected to reduce integration risks, accelerate platform deployment and strengthen Credo Technology’s position in high-speed connectivity solutions for next-generation AI infrastructure.

ALAB’s Share Price Performance, Valuation and Estimates

ALAB shares have surged 108.6% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s appreciation of 25.3%. The Zacks Internet - Software industry has returned 7.7% in the same time frame.

ALAB Stock’s Performance

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ALAB stock is trading at a premium, with a forward 12-month Price/Sales of 21.63X compared with the  Internet - Software industry’s 4.39X. ALAB has a Value Score of F.

ALAB’s Valuation

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The Zacks Consensus Estimate for 2026 earnings is pegged at $3.98 per share, which has been unchanged over the past 30 days. This suggests 116.30% year-over-year growth.

ALAB’s Zacks Rank

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.

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