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SAN JOSE - Astera Labs, Inc. (NASDAQ:ALAB) announced Tuesday that its Leo CXL Smart Memory Controllers are enabling customer evaluation of Compute Express Link (CXL) memory expansion capabilities in Microsoft’s Azure M-series virtual machines preview. The company, which has seen remarkable revenue growth of 136.5% over the last twelve months and maintains a strong financial health score according to InvestingPro data, continues to expand its technological footprint in cloud computing.
Microsoft’s Azure M-series VMs represent the industry’s first announced deployment of CXL-attached memory, designed to address memory-intensive workloads such as in-memory databases. The technology aims to overcome the "memory wall" limitation in traditional server architectures by enabling memory expansion beyond CPU-attached DRAM constraints.
Astera Labs’ Leo CXL Smart Memory Controllers support CXL 2.0 with up to 2TB of memory capacity per controller, allowing cloud providers to scale server memory capacity by more than 1.5 times, according to the company. This expanded memory capacity targets enterprise workloads including in-memory databases, big data analytics, AI inference applications, and machine learning workloads.
"Addressing memory capacity constraints in cloud infrastructure requires deep collaboration to understand both the technical challenges and the operational demands of hyperscale deployment," said Rajesh Sankaran, distinguished engineer and vice president of Azure Hardware Systems & Architecture at Microsoft.
The CXL technology implementation is intended to provide cloud providers and enterprises with flexibility to scale memory capacity and performance as organizations process increasingly large datasets.
Thad Omura, chief business officer for Astera Labs, stated, "By enabling dramatically higher memory capacities, we unlock performance and scalability for a growing list of AI and in-memory databases applications where memory is the ultimate constraint."
The announcement comes as memory-intensive workloads continue to challenge traditional server architectures in cloud environments, according to the company’s press release statement.
In other recent news, Astera Labs reported impressive earnings for Q3 2025, with earnings per share reaching $0.49, far exceeding the forecast of $0.13. The company also saw a substantial revenue increase, reaching $230.6 million, which marks a 104% year-over-year growth. Following this strong performance, Needham raised its price target for Astera Labs to $220, maintaining a Buy rating, highlighting growth across its Scorpio, Aries, and Taurus product lines. Meanwhile, BofA Securities lowered its price target to $210, maintaining a Neutral rating due to concerns about potential competition and a projected deceleration in sales growth. Northland upgraded Astera Labs to Outperform, anticipating earnings acceleration with the upcoming Scorpio X product launch. The Scorpio X product is expected to significantly impact revenue per GPU. In other developments, Intel Corporation announced the appointment of Craig H. Barratt to its board of directors. Barratt brings over three decades of experience in the semiconductor and technology sectors.
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