| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 6 | 140.0x | 17.8x | Bottom tier | |
Growth | 98 | 98.5% | 7.1% | Top tier | |
Quality | 88 | 21.9% | 4.5% | Top tier | |
Safety | 94 | — | 2.6x | Top tier | |
Capital Return | 64 | — | 2.12% | Around median | |
Momentum | 76 | 85.1% | 2.9% | Top tier | |
Sentiment | 45 | 15 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Astera Labs develops intelligent connectivity solutions for AI infrastructure and data centers, generating revenue from multiple product families, including Scorpio fabric switches, Aries retimers, Taurus connectivity solutions, and Leo memory controllers. These products are designed to connect AI accelerators, processors, and servers through technologies such as PCIe 6.0, Ethernet, and CXL, while the COSMOS platform adds management, diagnostics, traffic shaping, and workload orchestration capabilities.
In fiscal Q2 2026, Astera Labs reported record revenue of $392.4 million, up 27% sequentially and 104% year over year. PCIe 6.0 products accounted for more than 50% of revenue, compared with approximately one-third in fiscal Q1 2026, and Aries generated record quarterly revenue, while Scorpio growth accelerated with the start of initial production-volume shipments of Scorpio X-Series, and Taurus posted strong growth in units shipped.
Non-GAAP gross margin was approximately 73.7% in fiscal Q2 2026, exceeding the company’s guidance of 73%, and non-GAAP operating margin increased by 290 basis points sequentially to 39.1%. Non-GAAP net income was approximately $145.8 million, and diluted earnings per share were $0.80, while EDGAR data for the twelve-month period ending in 2026 show revenue of $1 billion and net income of $267.6 million.
The analyst consensus is “Buy,” with an average price target of $370.42 and a wide range extending from $153 to $500; the average target is below the 52-week high of $499.476, while the highest target nearly matches that level. The substantial difference between the low and high estimates reflects a fundamental divergence in assessments of Scorpio’s expansion pace and the sustainability of margins, despite Jefferies raising its target to $450 following the fiscal Q2 2026 results. No displayed P/E ratio is available, so the available valuation assessment is based on the market capitalization of $51.7 billion relative to revenue growth and on the 52-week range of $97.89–$499.476.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue increased to $392.4 million, growing 27% sequentially and 104% year over year. Growth came from broad strength across Scorpio, Aries, and Taurus, rather than from only one product line. PCIe 6.0 products accounted for more than half of revenue, up from approximately one-third in fiscal Q1 2026. Scorpio X-Series also began initial production-volume shipments, while Aries posted record quarterly revenue.
Scorpio X-Series has entered volume production, and management expects the Scorpio family to become the company’s largest product line by revenue in fiscal Q3 2026. The switches support high-port-count configurations and include Hyper-cast and in-network computing features that may improve collective-operations performance by up to twofold. The company has more than ten customers engaged with Scorpio X, with revenue-generating shipments to additional customers expected by the end of 2026. Management believes Scorpio X content alone could exceed $1,000 per XPU in future generations.
The company expects revenue of between $540 million and $560 million, with the midpoint representing sequential growth of approximately 40%. It expects non-GAAP diluted earnings per share of between $1.16 and $1.21 and an operating margin of approximately 43%. In contrast, it expects non-GAAP gross margin to decline to approximately 72% from 73.7% in fiscal Q2 2026. The outlook is based on Scorpio X-Series production, strength in Aries PCIe 6.0, and Taurus shipments supporting 800G.
Automated analysis for informational purposes only — not investment advice.
In fiscal Q2 2026, Astera Labs secured a design win for the standard Leo module at a large U.S. cloud service provider. It expects to ship standard and custom Leo modules in production volumes to large U.S. providers in 2027 for general-purpose computing and inference applications. In optical connectivity, the company is targeting production of a fiber solution for a tier-one provider and NPO solutions in 2027. Scorpio X switches integrated with optical CPO engines are part of the roadmap for 2028 and beyond.
Non-GAAP gross margin was approximately 73.7%, and operating margin was 39.1% in fiscal Q2 2026. For fiscal Q3, management expects gross margin of approximately 72%, while operating margin rises to approximately 43% due to operating leverage. The CFO explained that Scorpio’s average margin across use cases is generally close to the company’s margin, but the mix changes according to product type and the number of lanes utilized. Over the long term, management expects gross margin to trend toward 70%.
The first risk is fiscal Q3 2026 guidance’s reliance on the rapid ramp of Scorpio X production at the primary customer and opportunity, while other programs remain in qualification or pre-production. The second is the expected decline in non-GAAP gross margin from 73.7% in fiscal Q2 to approximately 72% in fiscal Q3, with a long-term target of approximately 70%. The UALink market is also competitive, and management acknowledged that other suppliers have announced products, while Astera Labs is targeting 2027 for its supporting solutions. Finally, the divergence in analyst targets between $153 and $500, together with the 52-week range of $97.89–$499.476, reflects a high degree of valuation uncertainty. claims.
