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Astera Labs soars as AI connectivity firm crushes earnings expectations

Published 05/08/2025, 21:38
Astera Labs soars as AI connectivity firm crushes earnings expectations
ALAB
28.66%

Investing.com -- Astera Labs , Inc. (NASDAQ:ALAB), a leader in semiconductor-based connectivity solutions for AI infrastructure, saw its shares surge 9.9% after reporting second-quarter earnings that significantly exceeded analyst expectations and issuing strong forward guidance.

The company reported adjusted earnings per share of $0.44 for the second quarter of fiscal 2025, beating the analyst consensus of $0.11 by $0.33. Revenue reached $191.9 million, representing a 20% sequential increase and a remarkable 150% jump YoY.

For the third quarter, Astera Labs provided guidance of $0.38-$0.39 in adjusted EPS, above the analyst consensus of $0.34. The company also projected Q3 revenue between $203-210 million, significantly higher than the consensus estimate of $180.7 million. The midpoint of this revenue guidance ($206.5 million) exceeds analyst expectations by approximately 14%.

"Astera Labs delivered strong financial results in Q2 with sequential revenue growth of 20%, driving meaningful upside to earnings and cash flow from operations," said Jitendra Mohan, Astera Labs’ Chief Executive Officer. "We successfully executed the next step in our growth journey by ramping our PCIe 6 product portfolio into volume production for customized rack-scale AI systems."

The company reported a non-GAAP gross margin of 76.0% and non-GAAP operating income of $75.2 million, resulting in a 39.2% operating margin. Astera Labs’ non-GAAP net income reached $78.0 million for the quarter.

During the quarter, Astera Labs expanded its collaboration with NVIDIA (NASDAQ:NVDA) to advance the NVLink Fusion ecosystem and partnered with Alchip Technologies to advance the silicon ecosystem for AI rack-scale infrastructure. The company also highlighted its role as a Promoter Member of the UALink Consortium, working to advance an open connectivity ecosystem for next-generation AI platforms.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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