Astera Labs and Marvell Technology: Two AI-Focused Semiconductor Companies

Astera Labs designs specialized connectivity hardware that helps massive data centers move information between processors and memory at extreme speeds. The company sells its COSMOS software-defined platform and hardware to major cloud providers and AI accelerator vendors. For the fiscal year ended Dec. 31, 2025, one end customer represented over 70% of revenue, with the top three accounting for 86%.

Marvell Technology provides the foundational networking and storage silicon used in data centers, carrier infrastructure, and enterprise environments. The company has increasingly focused on custom silicon and optical interconnects that power large-scale AI clusters.

Astera Labs faces substantial risk from its high revenue concentration, as losing a single large hyperscaler could severely impact its financial results. Marvell Technology deals with similar customer concentration risks and the potential volatility of capital spending cycles in the AI sector.