Astera Labs Broadens Scorpio X-Series Smart Fabric Switch Roadmap to Address Expanding Scale-Up Market Opportunities

Rhea-AI Summary

Astera Labs (Nasdaq: ALAB) expanded its Scorpio X-Series smart fabric switch roadmap on Jan. 22, 2026, announcing initial production shipments and an accelerated development plan to address the merchant scale-up switching market projected at $20 billion by 2030. The broadened roadmap adds five feature areas: increased radix support, hyperscaler platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity to enable multi-rack, thousand-GPU domains.

Astera Labs said the changes follow close collaboration and initial deployments with hyperscalers to meet varied scale-up networking needs.

Positive

• Initial production shipments of Scorpio X-Series began on Jan 22, 2026
• Merchant scale-up switching market projected at $20 billion by 2030
• Roadmap adds 5 feature areas including in-network compute and optical links
• Optical connectivity to enable multi-rack deployments scaling to thousands of GPUs

Negative

• None.

Key Figures

Scale-up switching TAM: $20 billion Target year: 2030 Q3 2025 revenue: $230.6 million +5 more

8 metrics

Scale-up switching TAM $20 billion Merchant scale-up switching market projected size by 2030

Target year 2030 Projection horizon for merchant scale-up switching market

Q3 2025 revenue $230.6 million Quarterly revenue, up 104% year over year

Revenue growth 104% Q3 2025 year-over-year revenue increase

Q3 2025 net income $91.1 million Quarterly net income with diluted EPS of $0.50

Diluted EPS $0.50 Q3 2025 diluted earnings per share

9M 2025 revenue $581.9 million First nine months of 2025 revenue

9M 2025 net income $174.2 million Net income for first nine months of 2025

Market Reality Check

Price: $169.66 Vol: Volume 6,648,357 is 1.55x...

high vol

$169.66 Last Close

Volume Volume 6,648,357 is 1.55x the 20-day average of 4,279,457, indicating elevated trading activity. high

Technical Price 176.005 sits above the 200-day MA 140.91, indicating a pre-news uptrend despite a -4.21% daily move.

Peers on Argus

ALAB fell 4.21% while key peers were mixed: MPWR +2.68%, MCHP +2.74%, MRVL +2.68...

ALAB fell 4.21% while key peers were mixed: MPWR +2.68%, MCHP +2.74%, MRVL +2.68%, CRDO -9.15%, NXPI -0.4%. This points to stock-specific trading rather than a broad semiconductor move.

Historical Context

5 past events · Latest: Jan 12 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 12	Conference participation	Neutral	+6.1%	Announcement of participation in two Q1 2026 investor conferences.
Jan 08	Earnings call notice	Neutral	+3.8%	Scheduled Q4 2025 results release and related conference call details.
Dec 02	Product expansion	Positive	-13.5%	Launch of custom connectivity solutions for heterogeneous AI infrastructure.
Nov 18	Cloud partnership	Positive	-1.3%	Leo CXL memory controllers enabling CXL expansion on Azure M-series.
Nov 13	Conference participation	Neutral	-8.4%	Multiple Q4 2025 investor conference presentations and webcasts.

Pattern Detected

Positive product and partnership news (e.g., AI connectivity, Azure CXL) previously coincided with negative price reactions, suggesting a pattern of selling into good news.

Recent Company History

Over the last six months, ALAB news has centered on AI connectivity expansion and investor outreach. On Nov 18, 2025, the company highlighted Leo CXL controllers on Microsoft Azure M-series VMs, yet shares fell 1.32%. A Dec 2, 2025 announcement on custom AI connectivity solutions saw a -13.47% move. In contrast, conference participation updates in Nov 2025 and Jan 2026 produced mixed but generally modest reactions. Today’s Scorpio X-Series roadmap expansion fits the ongoing AI infrastructure build-out narrative against this backdrop.

Market Pulse Summary

This announcement expands Astera Labs’ Scorpio X-Series roadmap to address a merchant scale-up switc...

Analysis

This announcement expands Astera Labs’ Scorpio X-Series roadmap to address a merchant scale-up switching market projected at $20 billion by 2030, adding features like in-network computing, Hypercast technology, and optical connectivity. Recent history shows a steady stream of AI-focused connectivity launches and cloud collaborations, alongside strong Q3 2025 financial growth. Investors may watch adoption across hyperscalers, execution on new capabilities, and how future results reflect these roadmap investments.

Key Terms

in-network computing, optical connectivity, photonic switch-to-accelerator links, fabric switch, +1 more

5 terms

in-network computing technical

"Scorpio X-Series will feature in-network compute that performs operations directly in the fabric switch"

In-network computing means moving some data processing into the network devices (like switches or routers) so work is done as data flows between machines rather than sending everything to a central server. For investors, it matters because this approach can cut delays, reduce the load and cost on central processors, and enable faster, cheaper services for applications such as cloud computing, real-time analytics, or large-scale AI — similar to having checkpoints that handle tasks along a highway instead of routing every stop back to a distant control center.

optical connectivity technical

"Expanded features will include support for increased radix, platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity"

Optical connectivity is the use of light, usually sent through fiber-optic cables, to link devices and carry large amounts of data quickly and reliably. Think of it as a high-speed highway for information where light replaces cars, allowing far more traffic with fewer delays. For investors, it matters because the quality and reach of optical links affect a company’s ability to grow services, control costs, attract customers, and compete in markets that demand fast, scalable data networks.

photonic switch-to-accelerator links technical

"Scorpio X-Series will incorporate photonic switch-to-accelerator links that will enable multi-rack deployments"

Photonic switch-to-accelerator links are light-based connections that carry data between network switches and specialized processing units (like AI or high-performance chips) inside data centers. They matter to investors because they can dramatically boost computing speed, cut delays and energy costs, and enable companies to run larger, faster workloads without needing proportionally more hardware — similar to replacing a congested highway with a high-speed express lane for critical traffic.

fabric switch technical

"in-network compute that performs operations directly in the fabric switch, offloading data-intensive work from GPUs"

A fabric switch is a high-capacity network device that connects many servers and storage systems to form a single, fast communication “fabric” inside a data center. Think of it as a smart highway interchange that routes large volumes of digital traffic with low delay and easy expansion; investors watch adoption because it affects companies’ operating costs, service performance, and ability to scale cloud or data-center businesses efficiently.

ai workloads technical

"The shift toward next-generation AI workloads is fundamentally changing scale-up connectivity requirements"

AI workloads are the computing tasks and data processing needed to build, train, and run artificial intelligence systems—examples include teaching a model from data, running real‑time predictions, or sorting large datasets. They matter to investors because the size and complexity of these tasks drive demand for specialized chips, cloud services, and software: firms that handle AI workloads more efficiently can scale faster, cut costs, and improve profit potential.

AI-generated analysis. Not financial advice.

Scorpio X-Series Begins Initial Production with Merchant Scale-Up Switching Market Estimated to Reach $20 billion by 20301

News Highlights:

• Developed in collaboration with hyperscalers, Scorpio X-series products are purpose-built to support scale-up networking, and are now shipping in initial production volumes
• Expanded features will include support for increased radix, platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity

SAN JOSE, Calif., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure, today announced an expanded portfolio roadmap that will feature new capabilities, including support for increased radix, platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity. Close collaboration with hyperscale customers and initial platform deployments have revealed new opportunities for the merchant scale-up switching market which is projected to reach $20 billion by 2030. Building upon Scorpio X-Series’ initial momentum, Astera Labs is accelerating investment in the Scorpio X-Series roadmap to further capitalize on this high-growth market opportunity.

The shift toward next-generation AI workloads is fundamentally changing scale-up connectivity requirements. Single clusters are now scaling to hundreds of thousands of AI accelerators that support expanding context windows and multi-turn agentic workflows, with each hyperscaler approaching these challenges with unique architectural approaches optimized for their specific workload profiles. These diverse requirements demand varied connectivity solutions—from different radix configurations to multiple platform-specific protocols, optical connectivity enablement, and advanced traffic management capabilities. Hyperscalers are seeking flexible, purpose-built connectivity solutions optimized for their unique architectural approaches and application needs.

“As hyperscalers scale to larger cluster sizes and deploy more complex AI workloads, they need flexible connectivity portfolios that can address varied architectural approaches—not one-size-fits-all solutions,” said Thad Omura, Chief Business Officer at Astera Labs. “The market opportunity is substantially larger than we initially anticipated, encompassing multiple device configurations, connectivity modalities, and protocol requirements. We're accelerating our development efforts across the Scorpio X-Series to serve this expanded opportunity and deliver the purpose-built solutions the market demands.”

To address this expanded market opportunity, Astera Labs is rapidly scaling the Scorpio X-Series portfolio in close collaboration with hyperscalers, AI platform providers, and neo-cloud leaders. The broadened roadmap will encompass five feature areas:

• Increased radix support: Multiple device configurations across the Scorpio X-Series family will support varied cluster sizes—from compact deployments to large-scale configurations—enabling hyperscalers to optimize fabric topology for their specific workload requirements.
  
  
• Hyperscaler platform-specific protocols: Scorpio X-Series will support customized interconnect protocols used by hyperscalers to optimize workloads and infrastructure, eliminating integration barriers and enabling seamless deployment into hybrid AI infrastructure architectures.
  
  
• In-network computing: Scorpio X-Series will feature in-network compute that performs operations directly in the fabric switch, offloading data-intensive work from GPUs to accelerate AI workloads and enable more efficient scaling.
  
  
• Hypercast technology: Astera Labs’ enhancement to standard data distribution protocols, purpose-built for AI workloads, will significantly reduce GPU-to-GPU communication overhead and improve overall GPU utilization.
  
  
• Optical Connectivity: Scorpio X-Series will incorporate photonic switch-to-accelerator links that will enable multi-rack deployments, allowing domains to scale to thousands of GPUs.
  

For more information about Scorpio X-Series Smart Fabric Switches, visit the Scorpio Smart Fabric Switches product page.

About Astera Labs
Astera Labs (Nasdaq: ALAB) provides rack-scale AI infrastructure through purpose-built connectivity solutions. By collaborating with hyperscalers and ecosystem partners, Astera Labs enables organizations to unlock the full potential of modern AI. Astera Labs’ Intelligent Connectivity Platform integrates CXL^®, Ethernet, NVLink, PCIe^®, and UALink™ semiconductor-based technologies with the company’s COSMOS software suite to unify diverse components into cohesive, flexible systems that deliver end-to-end scale-up, and scale-out connectivity. The company’s custom connectivity solutions business complements its standards-based portfolio, enabling customers to deploy tailored architectures to meet their unique infrastructure requirements. Discover more at www.asteralabs.com.

Forward-Looking Statements
This communication contains certain forward-looking statements regarding Astera Lab’s expectations with respect to merchant scale-up switching market opportunities, product roadmaps, production ramps and timelines, and product roadmap features. Such forward-looking statements are introduced using words such as “anticipated,” “estimated,” “opportunities,” “projected,” “roadmap,” “will” and variations of such words and similar expressions. Such statements involve risks and uncertainties, many of which are beyond the control of Astera Labs, that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, among others, the risk that the expected market opportunities may not materialize; we may be unable to achieve or incorporate the expected product features; delays, disruptions, challenges or increased costs in the ability to incorporate product features or achieve the expected product roadmap within the expected timelines; the complexities and uncertainties in developing and implementing solutions based on new features and technologies; litigation or disputes related to our products; macroeconomic conditions, including general semiconductor industry economic conditions; regulatory restrictions; international conflict and other risks and uncertainties described in Astera Lab’s Form 10-K, Form 10-Q and other filings with the SEC.

Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and no person assumes any obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent that disclosure may be required by law.

Media Contact:
Peter Lo
Peter.lo@asteralabs.com

¹ Market size estimate based on Astera Labs’ internal analysis using third-party research.

FAQ

What did Astera Labs (ALAB) announce about Scorpio X-Series on Jan. 22, 2026?

Astera Labs announced initial production shipments and an expanded roadmap adding increased radix, platform-specific protocols, in-network computing, Hypercast, and optical connectivity.

How large is the merchant scale-up switching market cited by Astera Labs (ALAB)?

Astera Labs referenced a merchant scale-up switching market projected at $20 billion by 2030.

Which new capabilities will ALAB add to Scorpio X-Series switches?

The roadmap adds increased radix, hyperscaler platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity.

What does in-network computing mean for Scorpio X-Series (ALAB)?

In-network computing performs operations inside the fabric switch to offload data-intensive work from GPUs and accelerate AI workloads.

Will Scorpio X-Series optical connectivity support multi-rack GPU deployments?

Yes; optical connectivity is intended to enable multi-rack links that allow domains to scale to thousands of GPUs.

How is Astera Labs developing Scorpio X-Series to meet hyperscaler needs (ALAB)?

Astera Labs said it is rapidly scaling the portfolio in close collaboration with hyperscalers and AI platform providers to support varied cluster sizes and platform-specific protocols.