Astera Labs Targets $10B AI Connectivity Opportunity as Scorpio X-Series Ramps

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Wed, May 27, 2026 astatine 12:08 PM CDT 6 min read

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Astera Labs (NASDAQ:ALAB) is seeing robust request crossed its connectivity portfolio and expects aggregate merchandise lines to lend to maturation done the backmost fractional of the twelvemonth and into 2027, Nick Aberle, vice president of concern and capitalist relations, said astatine the 54th Annual TD Cowen TMT Conference.

Aberle said the institution had reported “good results” astir a period earlier and guided for an acceleration successful maturation successful the 2nd quarter, with optimism for continued maturation inflection aboriginal successful the year. He said request remains beardown from a secular standpoint arsenic Astera seeks to physique retired what helium described arsenic a “connectivity backbone” for AI infrastructure.

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He said the institution has expanded beyond its halfway I/O connectivity products, Aries and Taurus, into much analyzable offerings including the Leo CXL Memory Controller and the Scorpio Smart Fabric Switch portfolio, which targets some scale-out and scale-up opportunities.

Scorpio X-Series Expected to Be a Key Growth Catalyst

Aberle said Scorpio X-Series is expected to beryllium “a large catalyst” for gross for the remainder of the twelvemonth and into 2027 arsenic the institution broadens crossed further customers. He said each of Astera’s merchandise lines are increasing sequentially into the 2nd quarter, and the institution expects each merchandise enactment to support increasing into the 3rd quarter, 4th fourth and adjacent year.

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According to Aberle, Scorpio X-Series addresses a marketplace accidental of much than $10 billion, which helium said represents astir fractional of the company’s full addressable market. He said the merchandise carries “extremely rich” contented and mean selling prices, allowing it to determination the needle much than immoderate different parts of the portfolio.

Aberle said Scorpio X-Series has been successful improvement for a agelong play of time, with pre-production volumes shipping successful the 2nd fractional of 2025 and aboriginal measurement accumulation opening successful the archetypal quarter. He said the portfolio present includes some smaller-radix and larger-radix solutions, which are shipping successful the 2nd quarter.

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While acknowledging that measurement deployment successful analyzable AI systems remains challenging, Aberle said the institution is assured successful its existent presumption and expects Scorpio X-Series to beryllium a “nice driver” successful the backmost half.

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