New York, Jan 23, 2026, 21:28 EST — Market closed
- Astera Labs shares dropped almost 4% in the previous session, following a downturn in chip stocks.
- The company revealed new features for its Scorpio X-Series switches and confirmed that initial production shipments are underway.
- Attention turns to next week’s crucial tech earnings, along with Astera’s report due Feb. 10.
Astera Labs shares dropped 3.8%, closing at $169.66 in the latest U.S. session. Investors digested a new product roadmap update amid ongoing volatility in the semiconductor sector.
Timing is everything. Chip stocks have jittered with every signal that AI spending is moving beyond hype into real figures. Investors are also gearing up for a busy run of mega-cap earnings alongside a Federal Reserve meeting. “Going into results, we’re going to be in a ‘show-me’ period,” said Janus Henderson portfolio manager Julian McManus. 1
Astera on Thursday unveiled a broader roadmap for its Scorpio X-Series “Smart Fabric Switch” lineup, targeting the merchant “scale-up” switching market — the critical high-speed infrastructure for large AI clusters. The company confirmed the X-Series has entered initial production shipments. 2
Scale-up networking refers to connections between accelerators within a single AI system, not between data centers. Astera pointed to the rise of larger clusters as fueling demand for switches with higher “radix” — meaning more ports per switch — and tailored protocols for specific customers. 3
“As hyperscalers expand to bigger clusters, they require more flexible connectivity options,” said Chief Business Officer Thad Omura. He noted the opportunity now appears “substantially larger than we initially anticipated.” 3
Astera’s roadmap highlights in-network computing, shifting some data tasks directly into the switch, alongside “Hypercast” technology designed to cut GPU-to-GPU communication overhead. The company also pointed to optical connectivity as a key to supporting multi-rack setups. 3
Friday’s retreat hit the wider chip sector, which slid as Intel tumbled on disappointing forecasts. A risk-off mood also made traders cautious around AI-related stocks. 1
Investors remain cautious about the disconnect between Astera’s product roadmaps and actual revenue. The company’s $20 billion market-size estimate comes from its own analysis combined with third-party research, but it flagged the possibility that projected opportunities, features, and timelines may not pan out as planned. 3
Competition adds another layer of pressure. The “scale-up” buildout competes in a crowded AI infrastructure space, where shifts in standards, customer designs, or capex plans can quickly upend networking and connectivity bets.
Astera plans to release its fourth-quarter 2025 results after the market closes on Feb. 10. A conference call will follow at 4:30 p.m. ET. 4
