Astera Labs joins Arm Total Design to advance chiplet solutions

SAN JOSE, Calif. - Semiconductor connectivity specialist Astera Labs, Inc. (NASDAQ:ALAB), a rapidly growing technology company with revenues of $605.55 million in the last twelve months, announced Tuesday it has joined the Arm Total Design ecosystem, a program focused on accelerating custom SoC development based on Arm Neoverse Compute Subsystems. According to InvestingPro data, the company has shown remarkable growth with revenue increasing by 163.8% year-over-year.

The collaboration aims to combine Astera Labs’ Intelligent Connectivity Platform with Arm’s Neoverse CSS to enable chiplet-based solutions addressing the growing demand for specialized AI infrastructure.

According to the announcement, traditional monolithic chip designs are reaching yield and cost limitations at advanced process nodes as AI workloads require increasingly specialized processing capabilities. Chiplet architectures offer an alternative by allowing AI platform developers to combine diverse processing units into unified systems.

As part of the Arm Total Design ecosystem, Astera Labs will provide multi-protocol chiplet capabilities through its connectivity platform, offering PCIe, Ethernet, CXL, and UALink solutions. The company states these technologies will enable customers to build custom AI infrastructure with validated connectivity from early development.

"The evolution to rack-scale AI infrastructure demands purpose-built solutions developed within open ecosystems, and our collaboration with Arm exemplifies this approach," said Sanjay Gajendra, president and chief operating officer at Astera Labs.

Mohamed Awad, senior vice president and general manager of Arm’s Infrastructure Business, noted that "connectivity is fundamental for realizing the full potential of tightly integrated systems and meeting the power and performance demands of AI."

The companies state that customers will gain access to Astera Labs’ connectivity expertise and Arm’s compute subsystems through the collaboration, which focuses on open standards-based platforms supporting interoperability and multi-vendor supply chains. With a strong financial position reflected by a current ratio of 11.1 and a market capitalization of $29.39 billion, Astera Labs has demonstrated its market strength. InvestingPro analysis reveals 16 additional key insights about the company’s performance and potential, available through the comprehensive Pro Research Report.

The information in this article is based on a press release statement from Astera Labs. The company’s stock has delivered an impressive 235.85% return over the past six months, though current valuations appear elevated with a P/E ratio of 292.57. For deeper insights into Astera Labs’ financial health and growth prospects, investors can access detailed analysis through InvestingPro’s comprehensive research tools.

In other recent news, Astera Labs reported strong financial results for the second quarter of 2025. The company posted non-GAAP diluted earnings per share of $0.44, significantly exceeding the forecasted $0.11, with revenue reaching $191.9 million, a 150% increase compared to the previous year. This performance was described by Evercore ISI as a "Big Beat, Big Raise quarter," leading the firm to raise its price target for Astera Labs to $215, while maintaining an Outperform rating. Stifel reiterated its Buy rating with a price target of $174, highlighting the company’s adept management of supply chain challenges, particularly with Taiwan Semiconductor Manufacturing Company’s advanced nodes. Meanwhile, BofA Securities initiated coverage on Astera Labs with a Neutral rating and a $230 price target, noting the company’s position in the AI connectivity semiconductor market. These developments reflect the company’s growing influence in AI infrastructure and its ability to navigate industry challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.