Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.

Astera Labs, Inc.

Key Points
Astera Labs provides critical connectivity solutions for AI infrastructure and maintains high net margins.
Nebius is scaling rapidly as a full-stack AI cloud provider with triple-digit revenue growth.
Which high-growth tech player deserves a spot in your portfolio in 2026?
Investors looking for exposure to the infrastructure powering artificial intelligence face a tough choice between Astera Labs (NASDAQ:ALAB) and Nebius (NASDAQ:NBIS) as both companies scale rapidly in 2026.
Astera Labs focuses on specialized connectivity hardware and software that helps data centers manage massive AI workloads efficiently. Nebius Group provides a full-stack AI cloud platform designed for developers and researchers. While one sells the specialized components for data movement, the other provides the environment where AI models are trained and deployed.
The case for Astera Labs
Astera Labs designs purpose-built connectivity solutions like PCIe and Ethernet for rack-scale AI infrastructure. It serves major hyperscalers and AI accelerator vendors among semiconductor stocks. Customer concentration adds a significant layer of risk to the business, as one end customer accounted for over 70% of revenue in 2025.
In FY 2025, revenue reached nearly $852.5 million, representing growth of approximately 115.1% compared to the previous year. The company reported a net income of close to $219.1 million. This resulted in a net margin of roughly 25.7% for the period, indicating the company is profitable on a net basis.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.0x, meaning the company carries no total debt relative to its shareholder equity. The current ratio, which measures the ability to cover short-term obligations with current assets, is roughly 10.2x. Free cash flow, or the cash left after capital spending, was approximately $281.8 million. Note that stock-based compensation represented roughly 50.1% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Nebius
Nebius operates as an AI cloud company, building full-stack infrastructure for training and deploying machine learning models. It serves a wide range of clients including research institutes, healthcare start-ups, and national AI programs.
In FY 2025, revenue reached nearly $529.8 million, marking a significant increase of approximately 479% over the prior year. The company reported a net income from continuing operations of $29 million. This reflects a net margin of roughly 5.5% for the fiscal year, showing the company turned profitable during this expansion phase.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 1.1x, which means total debt slightly exceeds shareholder equity. The current ratio is roughly 3.1x, providing a buffer for short-term liabilities. Free cash flow was a negative $3.7 billion as the company invested heavily in infrastructure. Note that stock-based compensation represented roughly 21.6% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparison
Astera Labs faces significant revenue concentration, with three customers representing about 86% of total sales. A loss of any major partner or a shift toward proprietary internal solutions by hyperscalers could severely impact financial results. It also relies on a fabless model through TSMC, exposing it to geopolitical tensions and trade disputes in East Asia.
Nebius operates in a competitive cloud market against massive incumbents like Amazon and Microsoft. While it has shown rapid growth, it faces risks associated with its global footprint and a complex regulatory environment across multiple countries. Success depends on the continued adoption of its specialized AI cloud ecosystem over more established, diversified competitors.
Valuation comparison
Nebius Group trades at a lower Forward P/E, which measures price against future earnings estimates, while Astera Labs carries a lower P/S ratio.
Metric
Astera Labs
Nebius
Forward P/E
93.5x
N/A
P/S ratio
56.8x
51.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Both companies are on fire, growing at a pace that is almost hard to fathom, and both are deeply embedded in the AI infrastructure build-out. But I'd go with Nebius.
Astera Labs is doing impressive work. Its connectivity chips are critical components inside the data centers that power AI workloads, and revenue has nearly doubled year over year. The risk here is concentration: Astera's fortune is tightly tied to a handful of hyperscaler customers and one dominant hardware ecosystem.
I like that Nebius is playing a different game entirely. It provides AI cloud computing directly to the companies building and running AI models, and demand is so far outpacing supply that customers are competing for every GPU cluster it brings online. Nvidia has taken a significant stake in the company, which is about as strong an endorsement as the AI industry offers.
For a long-term investor comfortable with volatility, Nebius offers a bigger canvas and a more defensible position as the AI cloud market matures.
Should you buy stock in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
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Sara Appino has positions in Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Astera Labs vs. Nebius: Which Technology Stock Is a Better Buy in 2026?

Key Points
Astera Labs provides essential connectivity hardware for AI data centers and has achieved profitability with a 25.7% net margin.
IonQ is a pioneer in quantum computing with triple-digit revenue growth but faces significant net losses and technology scaling challenges.
Which semiconductor stock deserves a spot in your portfolio?
Investors searching for the next wave of computing innovation can find it in Astera Labs (NASDAQ:ALAB) and IonQ (NYSE:IONQ). Both companies offer unique exposure to the future of high-performance infrastructure.
Astera Labs focuses on the immediate needs of artificial intelligence data centers through high-speed connectivity. Meanwhile, IonQ is building the foundation for quantum computing, a field that could eventually redefine how we solve the world's most complex problems.
The case for Astera Labs
Astera Labs provides connectivity solutions that link essential components within large scale AI data centers. It has positioned itself as a critical player among semiconductor stocks by solving data bottleneck problems with its hardware and software. Because one end customer accounts for over 70% of revenue, this concentration adds a layer of risk to the business.
In its 2025 fiscal year (FY), revenue reached nearly $852.5 million, representing growth of 115.1% over the prior year. The company reported net income of $219.1 million for the same period. This was a significant turnaround from the net loss reported in fiscal year 2024 and resulted in a net margin of 25.7%.
As of its December 2025 balance sheet, the debt-to-equity ratio is zero, meaning the company has no debt relative to shareholder equity. The current ratio is 10.2x, which measures a company's ability to cover short-term debts with its current assets. Free cash flow, which is the cash a company generates after supporting operations and capital assets, was $281.8 million, but stock-based compensation represented 50.1% of operating cash flow, which inflates reported cash generation.
The case for IonQ
IonQ offers quantum computing through the cloud and is currently integrating its business by acquiring SkyWater Technology. It reaches customers through major cloud platforms provided by the likes of Amazon. These partnerships allow the company to sell its computing power as a service while developing next-generation hardware.
In FY 2025, revenue reached $130.0 million, an increase of 201.9% compared to the previous year. Despite this growth, the company reported a net loss of $510.4 million. This net loss, which resulted in a net margin of -392.6%, was driven by heavy spending on research and development, as well as acquisitions, necessary for its early-stage technology.
As of its December 2025 balance sheet, the current ratio is 15.5x, suggesting plenty of liquidity to meet short-term obligations. The debt-to-equity ratio is zero, and the company reported negative free cash flow of $299.6 million. This negative free cash flow reflects the cash consumed by operations and capital investments before generating any profit.
Risk profile comparison
Astera Labs faces significant revenue concentration, as its top three customers account for 86% of total sales. The business is also heavily dependent on Taiwan Semiconductor Manufacturing Company for its manufacturing, which creates vulnerability to geopolitical issues in Taiwan. Competition from established firms such as Broadcom remains a constant threat to its market share and pricing power.
IonQ must overcome major technological barriers related to scaling its quantum computers and achieving fault tolerance. The company remains financially dependent on external capital to fund its massive operating losses. Additionally, it relies on partners like Amazon for distribution even though those companies are developing their own competing internal quantum systems.
Valuation comparison
Astera Labs carries a Forward P/E of nearly 93.5x, while IonQ is valued at a P/S ratio of close to 97.3x.
Metric
Astera Labs
IonQ
Forward P/E
93.5x
n/a
P/S ratio
56.8x
97.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Deciding to invest in Astera Labs or IonQ is a choice between exposure to artificial intelligence or quantum computing. The former offers the massive AI tailwind at its back. The latter is a more speculative play, as quantum computers remain limited in their application due to technical hurdles that make them expensive and difficult to scale.
IonQ is a compelling investment because it’s experiencing strong sales growth. This indicates its technology is winning customers. It reported record revenue of $64.7 million in the first quarter, representing impressive 755% year-on-year growth. However, it made a number of acquisitions to expand its technical capabilities, and that’s led to rising costs. Its Q1 operating loss ballooned to $271.5 million from a loss of $75.7 million in the prior year.
Astera Labs is an all-around solid investment. Its connectivity solutions are key components to AI infrastructure, and are seeing surging demand as demonstrated by its 93% year-on-year sales growth to $308.4 million in Q1. Its profits are expanding too, with Q1 operating income of $61.8 million compared to $11.3 million in 2025. With a historic buildout of data centers happening right now, Astera Labs’ revenue is poised to continue growing.
Given these many strengths, and a lower sales multiple indicating shares are a better value compared to IonQ, Astera Labs is the superior stock to buy in 2026.
Should you buy stock in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Robert Izquierdo has positions in Amazon, Astera Labs, Broadcom, IonQ, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Broadcom, IonQ, SkyWater Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Astera Labs vs. IonQ: Is the Artificial Intelligence Giant or the Quantum Computing Chipmaker the Better Stock to Buy in 2026?

Key Points
Hyperscalers are still pouring money into AI compute, sending Astera's revenue up 93% year over year last quarter.
Higher chip density and new Scorpio X switches should boost revenue per rack and support margins.
A rich valuation, heavy customer concentration, and tougher competition make waiting until after earnings the smarter play.
Despite recent volatility, the artificial intelligence (AI) infrastructure market remains red hot. Shares of Astera Labs (NASDAQ: ALAB) have rocketed 70% higher this year. However, the stock has pulled back ahead of the company's second-quarter earnings report on Aug. 4. That dip might look like a buying opportunity, but there are enough risk factors to keep me cautious. Here's why I'm bullish on Astera Labs long-term -- but would wait until after earnings to start a position.
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Favorable outlook for AI spending
Astera Labs serves as the connectivity backbone for AI servers in data centers. While it doesn't disclose specific customer names, it serves major hyperscalers -- and those companies continue to spend aggressively on AI compute.
Alphabet, for example, just raised its full-year capital expenditure guidance to around $200 billion and plans further spending increases in 2027. This is extremely bullish for the AI infrastructure supply chain, including Astera Labs.
Astera reported first-quarter revenue of $308 million, up 14% quarter over quarter and 93% year over year. Management guided for second-quarter revenue to come in between $355 million and $365 million, representing another significant increase.
AI servers are packing more chips into each rack, increasing the need for high-bandwidth connectivity and creating more opportunities for Astera to sell in each deployment. Management is clearly focused on attaching as much dollar content as possible to every AI accelerator in a rack, which should also help support healthy margins.
Looking ahead, Astera is expected to ramp up its new 320-lane Scorpio X fabric switches in the second half of 2026 as hyperscalers build larger AI chip clusters that demand higher-bandwidth connectivity.
Risks to watch
The stock has already run up this year, and its current 93x forward price-to-earnings multiple already prices in a lot of momentum. That alone makes me cautious, and it adds to other business risks.
Customer concentration stands out. Astera Labs sells to highly profitable hyperscaler businesses, but reliance on a handful of buyers could pressure growth if data center spending stalls. In 2025, one customer accounted for more than 70% of revenue.
Competition is also intensifying. Connectivity and networking are increasingly crowded areas, with much larger semiconductor companies such as Broadcom and Marvell Technology investing in these opportunities. Astera can still win, but it's operating next to giants with deeper resources and broader product portfolios.
That's why I would rather wait until after the results, when we'll know whether guidance supports the current valuation. What could make the stock attractive after earnings -- beyond the headline numbers -- is clear progress in diversifying the customer base and building momentum in selling more products to each customer.
Should you buy stock in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
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*Stock Advisor returns as of July 28, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Marvell Technology. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Astera Labs Stock Before Aug. 4?

Key Points
Astera Labs provides critical connectivity solutions for the booming artificial intelligence infrastructure market.
BigBear.ai offers specialized decision intelligence software primarily for government and defense applications.
Which semiconductor stock deserves a spot in your portfolio for the long term?
Investors seeking exposure to artificial intelligence often choose between hardware and software, making the comparison between Astera Labs (NASDAQ:ALAB) and BigBear.ai (NYSE:BBAI) a compelling look at two different market niches.
Astera Labs designs the high speed connectivity products that allow data centers to handle massive workloads, while BigBear.ai provides AI software used by government agencies to make complex decisions. Both companies are positioned within the growing AI sector, but they offer vastly different financial profiles and risk levels for individual investors to consider.
The case for Astera Labs
Strategically, Astera Labs focuses on designing rack scale connectivity solutions that include PCIe and Ethernet technologies to link data, memory, and networking components. As a prominent player among semiconductor stocks, the company sells its hardware to major hyperscalers and data center operators. Revenue is highly concentrated, with the top three end customers representing approximately 86% of revenue and one customer alone accounting for nearly 70%. Customer concentration like this adds a layer of risk to the business.
In its 2025 fiscal year (FY), revenue reached $852.5 million, which represents a massive increase of 115.1% compared to the prior year. This explosive growth helped the company achieve a net income of $219.1 million for the period. The net margin, which measures the percentage of revenue kept as profit after all expenses, sat at a healthy 25.7% during this fiscal year.
As of its December 2025 balance sheet, the company reported a debt-to-equity ratio of zero, indicating it uses no debt relative to its shareholder equity. The current ratio, which measures a company's ability to cover its short-term debts with its short-term assets, was a very strong 10.2x. Free cash flow, representing the cash a company generates after subtracting capital expenditures from operating cash flow, reached $281.8 million. Note that stock-based compensation (SBC) represented 50.1% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for BigBear.ai
BigBear.ai provides AI-powered decision intelligence solutions for supply chains, autonomous systems, and cybersecurity. The company is heavily dependent on the public and government sectors, including the Department of Defense. Its revenue is concentrated, with customers representing over 10% of revenue contributing 51% of total income. Customer concentration like this adds a layer of risk to the business, though the company is currently attempting to diversify into commercial cargo security and manufacturing.
In FY 2025, revenue was $127.7 million, representing a decline of 19.3% from the previous fiscal year. The company reported a net loss of $293.9 million during this period. Its net margin was a negative 230.2%, reflecting significant losses relative to the total sales generated during the year.
As of the December 2025 balance sheet, the debt-to-equity ratio was zero, as the company holds no debt relative to shareholder equity. The current ratio, which provides a look at whether a company can pay its upcoming bills with available assets, was 1.8x. Free cash flow was a negative $42.5 million for the fiscal year, meaning the company spent more cash on its operations and capital investments than it brought in from sales.
Risk profile comparison
Astera Labs faces significant supply chain dependency, as it relies exclusively on Taiwan Semiconductor Manufacturing Company for chip fabrication and other partners in East Asia for assembly and testing. Any geopolitical tensions or natural disasters in these regions could severely disrupt production and financial results. Furthermore, the company must compete with well-funded incumbents, such as Broadcom, who have deep resources to defend their market share in high speed connectivity.
BigBear.ai is currently navigating severe operational risks, including a class action lawsuit and material financial restatements for multiple years. These accounting issues and regulatory delays create reputational risk and could impact future contract wins. Additionally, the company relies heavily on fixed-price contracts, which can lead to margin erosion if costs are underestimated or if inflationary pressures increase the price of delivering services to the government.
Valuation comparison
Astera Labs commands a much higher valuation premium due to its rapid growth and profitability, while BigBear.ai appears cheaper but carries significant operational and financial uncertainty.
Metric
Astera Labs
BigBear.ai
Forward P/E
93.5x
n/a
P/S ratio
56.8x
10.6x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Investors have many choices these days when it comes to gaining exposure to the hot field of artificial intelligence, including Astera Labs and BigBear.ai. Between these two companies, Astera Labs is the stock to buy in 2026.
Although BigBear.ai shares are far cheaper from a valuation perspective, given its much lower sales multiple of 10.6, several factors contribute to this. The big one is that revenue fell nearly 20% year over year in 2025. Its declining revenue trend extended into the first quarter with sales of $34.4 million, down from $34.8 million in the prior year.
BigBear.ai’s revenue took a hit when the Trump Administration performed budget cuts, and the company was impacted. This suggests the company’s AI offerings are not as strong as competitors, such as Palantir Technologies, which did not see a slowdown in government sales growth.
Astera Labs is benefiting from the historic expansion of data centers to support AI adoption around the world. Its connectivity products are popular because they facilitate faster data transfer, a necessary attribute for AI systems, by eliminating bottlenecks, and enabling customers to manage complex AI infrastructure with ease.
Astera Labs delivered record first-quarter revenue of $308.4 million, an impressive 93% year-over-year increase. It expects sales to accelerate in Q2 to a range between $355 million to $365 million, indicating no slowdown in customer demand. These factors make Astera Labs the superior AI stock over BigBear.ai.
Should you buy stock in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 28, 2026.
Robert Izquierdo has positions in Astera Labs, Broadcom, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Astera Labs vs. BigBear.ai: Which Artificial Intelligence Stock Is a Better Buy in 2026?

For Immediate Release
Chicago, IL – July 24, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Credo Technology Group Holding Ltd. CRDO, Broadcom Inc. AVGO, Marvell Technology, Inc. MRVL and Astera Labs, Inc. ALAB.
Here are highlights from Thursday’s Analyst Blog:
4 Network Semiconductor Stocks to Watch in August
The artificial intelligence (AI) revolution has transformed the data center from a traditional computing facility into a high-performance AI factory. While graphics processing units have captured much of investors' attention, an equally important investment theme has emerged in AI data center networking. Semiconductor companies supplying Ethernet switches, optical interconnects, digital signal processors (DSPs), custom networking ASICs, retimers, and electro-optical components are witnessing unprecedented demand as hyperscalers race to build larger and more powerful AI clusters.
Semiconductor stocks operating in the AI data center space are experiencing strong demand due to the ramp-up of AI cluster sizes. The number of networking ports, optical transceivers, Ethernet switches and high-speed cables grows exponentially rather than linearly, creating an enormous opportunity for semiconductor suppliers. The transition toward higher networking speeds is further accelerating semiconductor demand. AI clusters are rapidly migrating from 400G networking to 800G Ethernet, while the industry is already preparing for 1.6-terabit (1.6T) networking beginning in 2027.
As the leading AI companies, hyperscalers, AI fabs and sovereign spending increase for ramping up the AI infrastructure, the semiconductor companies serving the compute, scale-out networking, storage, scale-up interconnect, custom AI application-specific integrated circuit chips, optical communication and power delivery chips for these AI players are also on the rise. The global semiconductor sales reached a record $120.6 billion in May 2026, rising 9.2% sequentially and 104.1% year over year, marking the 15th consecutive month. This is an ideal time to hunt for the most potent and silent winner of the semiconductor arena for August.
Investors looking to benefit from the networking chip companies benefiting from the AI boom in August 2026 should watch these stocks. Credo Technology Group Holding Ltd., Broadcom Inc., Marvell Technology, Inc. and Astera Labs, Inc. are four such networking chip stocks that investors should be following in August.
Stocks to Watch
Credo Technology is increasingly driven by its networking portfolio, with management forecasting more than 80% revenue growth in fiscal 2027. A key catalyst is its expanding optical networking business, which is expected to generate more than $600 million in revenues during fiscal 2027. This growth will be supported by ZeroFlap optics, silicon photonics, photonic integrated circuits and optical digital signal processors (DSPs), each projected to contribute more than $100 million.
Credo's revenues surged 157% year over year to $437 million in the fourth quarter of fiscal 2026. CRDO reported fourth-quarter fiscal 2026 non-GAAP diluted earnings per share of $1.16, which grew 12.6% year over year. The Zacks Consensus Estimate for fiscal 2027 EPS suggests a year-over-year increase of approximately 73%. The consensus mark for fiscal 2027 earnings has been revised upward over the past 30 days. Currently, CRDO sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.
Broadcom is benefiting from rising AI semiconductor demand, led by custom XPUs and AI networking. In the second quarter of fiscal 2026, networking represented almost 40% of AI revenues compared with one-third of AI revenues in the first quarter. For scale-up within racks, Broadcom enables direct-attached copper based on 200G and 400G SerDes, along with co-packaged copper with Ethernet and PCI Express switches. For scale-out between racks, the company has been shipping the 100-terabit Ethernet switch, Tomahawk 6, for more than a year. Broadcom expects to tape out its next-generation 200-terabit switch in fiscal 2026.
Broadcom's revenues rose 48% year over year to $22.19 billion in the second quarter of fiscal 2026. Broadcom reported second-quarter fiscal 2026 non-GAAP earnings of $2.44 per share, which rose 54% year over year. The Zacks Consensus Estimate for fiscal 2026 EPS suggests a year-over-year increase of approximately 72%. The consensus mark for fiscal 2026 earnings has been revised upward over the past seven days. Currently, AVGO carries a Zacks Rank #2 (Buy) and has a Growth Score of B.
Marvell Technology is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Marvell now expects its interconnect business to grow more than 70% year over year in fiscal 2027, supported by scale-out PAM ramp-ups and growing contributions from scale-up and scale-across networking. Within optics, the company expects TIAs and drivers to exceed a $1 billion annualized run rate in the next few quarters.
MRVL's revenues rose 28% year over year to $2.42 billion, with data center up 27% to $1.83 billion and representing 76% of sales. Non-GAAP EPS was 80 cents. The Zacks Consensus Estimate for fiscal 2027 EPS suggests a year-over-year increase of approximately 42.3%. The consensus mark for fiscal 2026 earnings has been revised upward over the past 60 days. Currently, MRVL has a Zacks Rank #3 (Hold).
Astera Labs is benefiting from rising demand for PCIe 6 signal conditioning and AI fabric switching as hyperscalers expand rack-scale AI deployments. The growing speed requirements and system complexity of AI infrastructure continue to support Astera Labs' connectivity roadmap. In the first quarter of 2026, ALAB's results showed demand broadening across Astera's PCIe Gen 6 portfolio, with Gen 6 revenue across AI fabric and signal conditioning contributing more than one-third of the company's revenue.
ALAB's revenues totaled $308 million, up 93.4% from the year-ago quarter, while non-GAAP earnings of 61 cents per share were up 84.8% year over year. The Zacks Consensus Estimate for 2026 EPS suggests a year-over-year increase of approximately 61%. The consensus mark for fiscal 2026 earnings has been revised upward over the past 30 days. Currently, ALAB carries a Zacks Rank #3.
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The Zacks Analyst Blog Highlights Credo Technology, Broadcom, Marvell Technology and Astera Labs

Key Points
Advanced Micro Devices maintains a massive lead in total historical revenue, though Astera Labs currently shows steeper consecutive growth.
Astera Labs has consistently delivered unbroken quarter-over-quarter increases over the last eight periods, while AMD has experienced a slightly more fluctuating quarter-over-quarter trend.
Investors should closely watch whether the absolute revenue gap between the two companies continues to narrow in upcoming quarters.
Astera Labs: Consistent Revenue Increases
Astera Labs (NASDAQ:ALAB) develops and markets semiconductor-based connectivity solutions for cloud computing and artificial intelligence infrastructure.
It expanded its operations in Taiwan in June 2026, while reporting a net income margin of 26% for the quarter ended March 31, 2026.
Advanced Micro Devices: Managing Massive Scale
Advanced Micro Devices (NASDAQ:AMD) primarily generates revenue by developing microprocessors, chipsets, and graphics processing units for various hardware clients.
It committed over $10 billion to the Taiwan ecosystem in May 2026, and reported an EBIT margin of 14% for the quarter ended March 28, 2026.
Why Revenue Matters for Retail Investors
Revenue represents the total money a business brings in before any expenses are subtracted. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory.
Quarterly Revenue for Astera Labs and Advanced Micro Devices
Quarter (Period End)
Astera Labs Revenue
Advanced Micro Devices Revenue
Q2 2024
$76.8 million (period ended June 2024)
$5.8 billion (period ended June 2024)
Q3 2024
$113.1 million (period ended Sept. 2024)
$6.8 billion (period ended Sept. 2024)
Q4 2024
$141.1 million (period ended Dec. 2024)
$7.7 billion (period ended Dec. 2024)
Q1 2025
$159.4 million (period ended March 2025)
$7.4 billion (period ended March 2025)
Q2 2025
$191.9 million (period ended June 2025)
$7.7 billion (period ended June 2025)
Q3 2025
$230.6 million (period ended Sept. 2025)
$9.2 billion (period ended Sept. 2025)
Q4 2025
$270.6 million (period ended Dec. 2025)
$10.3 billion (period ended Dec. 2025)
Q1 2026
$308.4 million (period ended March 2026)
$10.3 billion (period ended March 2026)
Data source: Company filings. Data as of July 17, 2026.
Foolish Take
Astera Labs and Advanced Micro Devices (AMD) are two of the biggest beneficiaries of artificial intelligence’s arrival into the mainstream. AMD’s revenue towers over Astera Labs, illustrating the massive demand for its advanced semiconductor chips used in AI systems.
That said, Astera Labs is growing faster. Its first-quarter revenue of $308.4 million represented a whopping 93% year-over-year increase. This demonstrates how its connectivity solutions are quickly becoming critical components of AI infrastructure.
Astera Labs expects sales to continue accelerating. It forecasted revenue in a range between $355 million to $365 million for Q2. The increase in data centers to expand AI capacity is contributing to the company’s incredible revenue growth.
AMD is no slouch, however. The sales of $10.3 billion in its latest quarter is an outstanding 38% year-over-year increase. It expects to reach revenue of $11.2 billion in the second quarter. On July 22, the company announced a new deal with AI giant Anthropic, and a separate announcement of an expanded partnership with Microsoft on July 20. These reveal that AMD’s sales are likely to see continued growth.
Should you buy stock in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!*
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Robert Izquierdo has positions in Advanced Micro Devices, Astera Labs, and Microsoft. The Motley Fool has positions in and recommends Advanced Micro Devices and Microsoft. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Astera Labs vs. Advanced Micro Devices: What the Revenue Trajectories of These Artificial Intelligence Companies Reveal to Investors.

Key Points
Astera Labs currently shows more consistent upward revenue momentum than Intel.
Astera Labs delivered consecutive quarter-over-quarter revenue increases, while Intel saw its revenue fluctuate within a relatively flat range.
Investors should watch whether the stark contrast in revenue trajectory between the two companies persists in upcoming quarters.
Astera Labs: Steady Upward Revenue Trend
Astera Labs (NASDAQ:ALAB) primarily generates revenue by developing and marketing connectivity products for cloud computing infrastructure.
It recently expanded its operations in Taiwan, and for the quarter ended March 31, 2026, it generated 26% net income margin.
Intel: Managing Fluctuating Revenue
Intel (NASDAQ:INTC) earns its revenue by designing and manufacturing computing processors, graphics units, and semiconductor components.
While implementing a workforce reduction impacting manufacturing roles in July, it reported 39% gross margin for the quarter ended March 28, 2026.
Why Revenue Matters for Retail Investors
Revenue shows investors the total amount of money a business brings in from its core operations before any expenses are deducted. Tracking this figure helps investors understand the total scale and top-line growth trajectory of a business.
Quarterly Revenue for Astera Labs and Intel
Quarter (Period End)
Astera Labs Revenue
Intel Revenue
Q2 2024
$76.8 million (period ended June 2024)
$12.8 billion (period ended June 2024)
Q3 2024
$113.1 million (period ended Sept. 2024)
$13.3 billion (period ended Sept. 2024)
Q4 2024
$141.1 million (period ended Dec. 2024)
$14.3 billion (period ended Dec. 2024)
Q1 2025
$159.4 million (period ended March 2025)
$12.7 billion (period ended March 2025)
Q2 2025
$191.9 million (period ended June 2025)
$12.9 billion (period ended June 2025)
Q3 2025
$230.6 million (period ended Sept. 2025)
$13.7 billion (period ended Sept. 2025)
Q4 2025
$270.6 million (period ended Dec. 2025)
$13.7 billion (period ended Dec. 2025)
Q1 2026
$308.4 million (period ended March 2026)
$13.6 billion (period ended March 2026)
Data source: Company filings. Data as of July 17, 2026.
Foolish Take
While Intel’s revenue towers over Astera Labs, the trend for the latter shows accelerating quarter-over-quarter sales growth, an impressive feat. Meanwhile, Intel has struggled to achieve year-over-year increases.
This disparity demonstrates the strong demand Astera Labs is seeing for its connectivity solutions, which deliver superior data transfer speeds for artificial intelligence systems. As the AI industry continues to expand over the coming years, Astera Labs’ rising revenue trend should continue. In fact, the company expects its second-quarter sales to again come in higher than the previous quarter, forecasting a range between $355 million to $365 million.
Intel is undergoing a transition period under new CEO Lip-Bu Tan, who took over the top spot in 2025 after the company suffered a series of struggles under previous leadership. The veteran semiconductor giant was at risk of missing out on the AI market until Tan made changes that appear to be putting Intel back on track.
This is demonstrated by the 7% year-over-year increase in revenue for its fiscal first quarter ended March 28. For fiscal Q2, Intel forecasted revenue between $13.8 billion and $14.8 billion, which not only represents a year-over-year jump but also quarterly sequential growth. At last, the company may be headed towards a consistent sales upswing thanks to AI.
Should you buy stock in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
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*Stock Advisor returns as of July 20, 2026.
Robert Izquierdo has positions in Astera Labs and Intel. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Astera Labs vs. Intel: What Do Revenue Trends for These Artificial Intelligence Companies Tell Investors?

Key Points
Astera Labs currently demonstrates a clearly stronger and more consistent upward revenue trajectory when compared directly to the declining numbers reported by Navitas.
Over the last eight periods, Astera Labs has recorded steady quarter-over-quarter revenue expansion, whereas Navitas has experienced a sequence of consecutive quarter-over-quarter declines.
Investors observing these trends should watch closely to see whether the rapidly widening revenue gap between the two companies persists or begins to stabilize in upcoming quarters.
Astera Labs: Steady Upward Revenue Expansion
Astera Labs (NASDAQ:ALAB) develops, produces, and markets connectivity solutions utilizing a software-defined architecture to empower customers to deploy and operate high-performance cloud and artificial intelligence systems at scale.
While expanding its Taiwan operations and related facilities to facilitate system integration with local manufacturers, it was added to the Nasdaq-100 Index and reported a 26% net income margin for the quarter ended March 31, 2026.
Navitas Semiconductor: Navigating Ongoing Revenue Declines
Navitas Semiconductor (NASDAQ:NVTS) designs, develops, and markets gallium nitride power integrated circuits, silicon system controllers, and digital isolators for various power conversion and charging applications around the world.
It responded to a new patent infringement lawsuit filed by Wolfspeed, issued earn-out shares to satisfy contingent obligations, and reported a negative 318% EBIT margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail Investors
Revenue gives investors an essential baseline measure of the total money brought in by a business over a given period before any operating expenses, taxes, or interest payments are subtracted. This metric reveals whether an organization is successfully attracting customers and growing its overall business volume over time.
Quarterly Revenue Trends for Astera Labs and Navitas Semiconductor
Quarter (Period End)
Astera Labs Revenue
Navitas Semiconductor Revenue
Q2 2024
$76.8 million (period ended June 2024)
$20.5 million (period ended June 2024)
Q3 2024
$113.1 million (period ended Sept. 2024)
$21.7 million (period ended Sept. 2024)
Q4 2024
$141.1 million (period ended Dec. 2024)
$18.0 million (period ended Dec. 2024)
Q1 2025
$159.4 million (period ended March 2025)
$14.0 million (period ended March 2025)
Q2 2025
$191.9 million (period ended June 2025)
$14.5 million (period ended June 2025)
Q3 2025
$230.6 million (period ended Sept. 2025)
$10.1 million (period ended Sept. 2025)
Q4 2025
$270.6 million (period ended Dec. 2025)
$7.3 million (period ended Dec. 2025)
Q1 2026
$308.4 million (period ended March 2026)
$8.6 million (period ended March 2026)
Data source: Company filings. Data as of July 17, 2026.
Foolish Take
Both Astera Labs and Navitas Semiconductor seek to capitalize on the artificial intelligence sector’s growth. Their revenue trends reveal which is successfully capturing this industry expansion. Clearly, Astera Labs is the winner here, as illustrated by the whopping 93% year-over-year sales growth seen in the first quarter.
The connectivity solutions developed by Astera Labs are critical components of AI infrastructure. They deliver superior data transfer speeds compared to previous products, and AI businesses seek speed as a key enabler of artificial intelligence technology.
That said, Navitas is undergoing an interesting transition period. Last year, the company decided to discontinue its lucrative mobile and consumer businesses in China, which accounted for 60% of its revenue in 2024. It wants to focus on power conversion and charging solutions for the AI market instead. That’s why its sales are in freefall.
However, Navitas management believes revenue will start to climb this year, as demonstrated by the 18% sales increase in the first quarter over Q4. Investing in the company at this point is a leap of faith that its AI strategy will be a winner over the long term.
Should you buy stock in Astera Labs right now?
Before you buy stock in Astera Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Robert Izquierdo has positions in Astera Labs. The Motley Fool recommends Astera Labs and Wolfspeed. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Astera Labs vs. Navitas Semiconductor: What the Revenue Trajectories of These Artificial Intelligence Companies Reveal to Investors.

Key Points
Power management systems are an underrated part of AI infrastructure that have helped Monolithic Power Systems outperform Nvidia this year.
Astera Labs' rack-scale AI infrastructure continues to grow with hyperscalers and provides high sequential growth rates for investors.
Cadence Design Systems is positioned well for the broad commercialization of AI agents.
Nvidia went on an incredible run to become the world's most valuable publicly traded company, but its 11% year-to-date return looks pedestrian compared to some of the other AI stocks that have been capturing headlines in recent months.
The three growth stocks on this list all have exposure to the AI infrastructure build-out, and they've all outgained Nvidia so far this year. They also look well positioned to extend their rallies and outperform it in 2027.
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1. Monolithic Power Systems
Monolithic Power Systems (NASDAQ: MPWR) produces power management systems that enable data centers to maintain continuous uptime without overloading AI chips. Power management systems work hand in hand with liquid-cooling solutions to keep chips and servers cool.
The stock has rallied by more than 40% year to date as AI data centers' demand for the company's products has grown. Monolithic Power Systems' revenue increased by 26.1% year over year in the first quarter, and net income grew at a slightly faster rate.
While the company lists six business segments in its earnings results, two of them are doing most of the heavy lifting. Enterprise data is the main one. It accounted for about one-third of total sales, and it nearly doubled year over year. This part of the business addresses power management and integrated solutions for AI chips and servers.
The communications segment is the other big one. This part of the business focuses on telecom infrastructure, satellite systems, and networking equipment. Its top line was up by 55.5% year over year, and up 33.1% sequentially, thanks to AI tailwinds. It makes up 14% of total sales.
As these two hypergrowth parts of the business gain market share, Monolithic Power Systems should experience accelerating revenue growth. That should position the stock to outperform Nvidia again in 2027.
2. Astera Labs
Astera Labs (NASDAQ: ALAB) creates rack-scale connectivity hardware and software for AI servers. Many hyperscalers are turning to the company for connectivity solutions that enable faster data transmission between AI chips and server clusters.
Its revenue growth rates should prompt investors to give it a closer look. Sales almost doubled year over year in its first quarter, and its 14% sequential growth rate shows solid momentum. Double-digit percentage sequential revenue growth rates have become more common in the AI hardware space; for example, such a trend preceded Micron's incredible share price run.
Management's guidance is already pointing to meaningful growth from here. The $360 million midpoint of the guidance range for Q2 revenue implies 16.7% sequential growth. However, if recent history is any indicator, the actual growth rate may be closer to 20%. Astera Labs told investors to only expect up to $297 million in Q1 revenue, and yet it delivered $308.4 million.
Although the stock has almost doubled this year, it's also down by roughly 33% from its peak over the past few weeks, which presents a good buy-the-dip opportunity.
3. Cadence Design Systems
Cadence Design Systems (NASDAQ: CDNS) is off to a slower start than the other AI stocks on this list. It's up by almost 20% this year, driven by wins in electronic design automation software and hardware among chipmakers. These solutions enable companies like Nvidia and Advanced Micro Devices to test and build semiconductors before sending their designs to the third-party foundries that manufacture them.
Its growth rates are more moderate than the other two picks, but it sports a record $8 billion backlog. Cadence Design Systems also told investors to expect 17% revenue growth for 2026.
Agentic AI is set to be a major tailwind for the company. Its technology makes it easier to design advanced AI chips that can handle more rigorous workloads than those currently in data centers. That makes it a key checkpoint for AI chips, and that market can support revenue growth and profit margin expansion, which in turn would make the stock more attractive.
Should you buy stock in Monolithic Power Systems right now?
Before you buy stock in Monolithic Power Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Monolithic Power Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 18, 2026.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Cadence Design Systems, Micron Technology, Monolithic Power Systems, and Nvidia. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 AI Stocks That Can Outperform Nvidia Next Year

D-Wave Quantum QBTS, or D-Wave, continues to see growing interest in its Advantage2 annealing quantum computer system. During the May 2026earnings call management raised its annual outlook for system sales, now expecting to close 2 or 3 system deals per year, with at least 2 system deliveries anticipated this year.
The stronger outlook comes on the back of record first-quarter bookings of $33.4 million, up 1,994% from the year-ago quarter and 149% from the fourth quarter of 2025. More than two dozen commercial customers accounted for more than 31% of quarterly bookings, while educational and research organizations made up the rest.
The largest transaction was the $20 million annealing quantum computer system sale to Florida Atlantic University in January, which D-Wave views as an important collaboration to further quantum computing experimentation and innovation. During the first quarter of 2026, the dollar value of the company’s sales opportunity pipeline more than doubled from the end of the fourth quarter of 2025, while the average potential deal size also more than doubled over the same period.
Management noted that system sales typically involve multiple stages, such as site preparation, delivery, installation and calibration, before customers begin using the systems. While a significant portion of revenues is recognized when a system is delivered, additional revenues are recognized over time as installation and calibration activities progress.
D-Wave also expects most system transactions to include multiyear revenue components, such as service and maintenance contracts, as well as access to its cloud service. These recurring streams expected to complement revenue generated from the initial system sales.
QBTS’ Peer Updates
Astera Labs ALAB has announced a significant expansion of its Taiwan operations and Cloud-Scale Interop Lab. This deepens ALAB’s engineering and operational footprint, and strategic coordination with customers and ecosystem partners in one of the world’s most important semiconductor ecosystems. In collaboration with several AI platform providers, Astera Labs will strengthen the validation and system integration work required to bring purpose-built AI infrastructure to market faster.
Arista Networks ANET has announced a new portfolio of 1.6T networking platforms designed specifically as the foundation for rack-scale AI infrastructure. The 7060XE7 Series represents Arista’s transition from providing high-performance switches to delivering comprehensive rack-scale systems. By addressing the extreme density, power and thermal efficiency requirements of the AI era, these platforms of ANET enable customers to build scale-up and scale-out AI fabrics optimized for air, liquid and hybrid-cooled environments, maximizing compute density per kilowatt of power.
QBTS’ Price Performance, Valuation & Earnings
Year to date, QBTS shares have declined 30.1% compared with the industry’s 4.5% fall.
Image Source: Zacks Investment Research
D-Wave is trading at a forward, five-year Price/Sales (P/S) of 103.29X, significantly higher than its 16.25X median and the industry average of 4.06X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for D-Wave’s 2026 and 2027 loss per share has remained constant in the past 60 days.
Image Source: Zacks Investment Research
D-Wave currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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