Astera Labs: Strong UALink Growth Drives Momentum, but Competition from Broadcom and Marvell Tech Remains

Astera Labs (ALAB) benefits from strong growth in UALink, an open standard connectivity protocol for AI infrastructure. The company expects UALink to capture a significant share of the growing AI infrastructure market, with a multibillion-dollar additional market opportunity by 2029. However, ALAB faces stiff competition from Broadcom (AVGO) and Marvell Technology (MRVL). ALAB shares have risen 91% in the past six months, but are trading at a premium with a forward 12-month Price/Sales of 24.77X.