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Astera Labs Shares Leap on Evercore Upgrade as Scorpio Shipments Brighten AI Outlook

The AI networking supplier is gaining scale with 320-lane Scorpio switches now in commercial use.

Overview

  • The stock jumped more than 13% after Evercore ISI lifted its price target to $297 and investors reacted to upbeat conference remarks from management.
  • Astera reported $308 million in Q1 revenue, up 93% year over year, with earnings of $0.61 per share and Q2 guidance of $355–$365 million.
  • Scorpio X‑Series chips with 320 lanes are shipping commercially, providing fabric switches that move data between AI chips to cut delays and lower cost per token.
  • Executives said Scorpio is on track to become the largest product line by year‑end, with the P‑Series slated to ship to two hyperscalers in the second half.
  • The company highlights roughly 70% gross margin, but more than 70% of projected 2025 revenue tied to one customer underscores concentration risk.