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SAN JOSE - Astera Labs, Inc. (NASDAQ:ALAB) announced Tuesday that its Leo CXL Smart Memory Controllers are enabling Microsoft’s Azure M-series virtual machines preview, marking the industry’s first announced deployment of Compute Express Link (CXL) memory expansion technology. The company, currently valued at $23.6 billion, has demonstrated remarkable revenue growth of 136.5% over the last twelve months, according to InvestingPro data.
The collaboration addresses growing demands of memory-intensive workloads such as in-memory databases by breaking through traditional server architecture limitations known as the "memory wall." Astera’s 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.
"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 technology aims to benefit enterprise workloads including in-memory databases and big data analytics, while also supporting AI inference applications and machine learning workloads where expanded memory capacity can reduce total cost of ownership. With a gross profit margin of 75.4% and an impressive financial health score rated as "Great" by InvestingPro, Astera Labs appears well-positioned to capitalize on this growing market.
Thad Omura, chief business officer for Astera Labs, noted that the collaboration demonstrates the company’s commitment to advancing memory connectivity solutions for cloud infrastructure.
The Azure M-series VMs preview allows customers to evaluate CXL memory expansion capabilities for their specific workloads, according to the company’s press release statement.
In other recent news, Astera Labs has been in the spotlight with several key developments. The company announced that its Leo CXL Smart Memory Controllers are facilitating customer evaluations of Compute Express Link memory expansion in Microsoft’s Azure M-series virtual machines preview. This marks the industry’s first deployment of CXL-attached memory, aimed at addressing memory-intensive workloads. On the financial front, Northland upgraded Astera Labs’ stock rating to Outperform, citing anticipated earnings growth from the upcoming production ramp of the Scorpio X product. Needham also raised its price target for Astera Labs to $220, following a strong quarterly earnings report highlighting growth in multiple product lines. Meanwhile, BofA Securities lowered its price target to $210 due to concerns about future competition and a potential slowdown in sales growth. These developments reflect the dynamic landscape Astera Labs is navigating in the tech industry.
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