Morgan Stanley: NVIDIA Corporation (NVDA.US) alliance with Intel Corporation (INTC.US) may impact Astera Labs (ALAB.US)

Morgan Stanley stated that the joint development agreement between Intel Corporation (INTC.US) and NVIDIA Corporation (NVDA.US) for PC and data center chips may have a significant impact on Astera Labs (ALAB.US), but the specific direction and extent of the impact are currently unclear. Analysts at Morgan Stanley said in a report to clients, "Although Intel Corporation was not mentioned in the initial announcement of NVIDIA Corporation's NVLink Fusion technology earlier this year, we have always believed that this technology is part of NVIDIA Corporation's strategy to capture a larger share of the 'server x86 architecture CPU market'." There is a concern in the market that if NVLink technology extends into the x86 domain, it could replace the traditional PCIe interface connection between x86 architecture CPUs and NVIDIA Corporation GPUs, potentially impacting Astera Labs' business which includes a significant amount of PCIe-related technology and components. However, at this stage, no definite conclusion can be drawn. Although Astera Labs is listed as a partner for NVLink Fusion technology, it is still possible that they will retain business participation in the technology ecosystem in the future, but the specific details of the collaboration are not clear at the moment. Furthermore, it will take several years for the collaboration project between Intel Corporation and NVIDIA Corporation to materialize. However, the analysts at Morgan Stanley added that this "structural change" in the semiconductor industry "highlights the importance of 'chip interconnect technology' and the advantages of 'rack-level computing'." As of the time of writing, Astera Labs' stock price fell by 2.4% in pre-market trading on Friday.