Astera Labs Reports Record Q2 Revenue, Driven by AI Infrastructure Demand

Astera Labs Stock Surges Over 18% During Pre-Market On Record Quarterly Revenue - Astera Labs (NASDAQ:ALAB)

Astera Labs Inc. ALAB witnessed an 18.73% surge in its stock value during the pre-market session on Wednesday. This came after the company announced its second-quarter financial results, which exceeded market expectations. Check out how ALAB stock is trading here. What Happened: Astera Labs' stock price soared to $160.93 in pre-market trading, marking an 18.73% increase from the previous day's close of $135.54, according to Benzinga Pro data. The company reported a 20% quarter-over-quarter increase in revenue, reaching a record $191.9 million during the second quarter. This represents a 150% year-over-year rise. The California-based connectivity provider company is worth $22.35 billion, with about 5.11 million shares of the company traded each day. The stock over the past year has traded between $36.22 and $147.39. See Also: India Says 'Revealing' That US Is Trading With Russia After Trump Accuses New Delhi Of Reselling Oil For 'Big Profits' The company's CEO, Jitendra Mohan, attributed the strong financial performance to the successful ramping of the PCIe 6 product portfolio into volume production for customized rack-scale AI systems. Additionally, new design wins for the Scorpio Fabric Switches and robust demand for the signal conditioning portfolio were noted. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started Why It Matters: The surge in Astera Labs' stock value follows the company's announcement of its record second-quarter earnings. The company's stock price soared after it reported record quarterly revenue, which exceeded market expectations. Astera also expects revenue between $203 million and $210 million and Generally Accepted Accounting Principles (GAAP) diluted earnings per share (EPS) of $0.23 to $0.24 for the upcoming quarter. With a strong Momentum in the 96th percentile, Benzinga's Edge Stock Rankings indicate that ALAB has a positive price trend across all time frames. Know how the company's momentum lines up with other well-known names. Read Next: Dormant Bitcoin Whale Awakens After 14 Years, Moves $469.8 Million Worth of BTC Photo courtesy: Piotr Swat via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. ALABAstera Labs Inc$160.5018.4%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.87GrowthN/AQualityN/AValue5.20Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Astera Labs Stock Soars After Q2 Results: Here's Why - Astera Labs (NASDAQ:ALAB)

Astera Labs ALAB stock is soaring on Tuesday after the company reported record quarterly revenue after market close. Check out ALAB price action here. What Happened: Astera Labs reported second-quarter revenue of $191.9 million, up 150% year-over-year and up 20% quarter-over-quarter. The revenue total beat a Street consensus estimate of $172.54 million according to data from Benzinga Pro. The company's revenue was a quarterly record, as was operating cash flow generation of $135.4 million. Astera Labs reported adjusted earnings per share of 44 cents, beating a Street consensus of 32 cents per share. "Astera Labs delivered strong financial results in Q2 with sequential revenue growth of 20 percent, driving meaningful upside to earnings and cash flow from operations," Astera CEO Jitendra Mohan said. Mohan said the company executed the next step in its growth journey in the second quarter by ramping up PCIe 6 connectivity product portfolio. The products are now in volume production for customized rack-scale AI systems. Astera added several design wins for its Scorpio Fabric Switches in the quarter. "Astera is at the forefront of an AI infrastructure transformation, and we are accelerating our investments to realize our vision of rack-scale connectivity in next-generation AI systems." In the quarter, the company expanded its collaboration with NVIDIA Corp NVDA to advance the NVLink Fusion ecosystem. Astera Labs is providing NVLink connectivity solutions. What's Next: Astera Labs is guiding for third quarter revenue to be in a range of $203 million to $210 million. Analysts expect the company's third-quarter revenue to be $180.73 million, according to data from Benzinga Pro. The company expects adjusted earnings per share in a range of 38 cents to 39 cents for the third quarter. Analysts estimate earnings to be 34 cents per share. ALAB Price Action: Astera Labs stock is up 10.89% to $150.30 in after-hours trading Tuesday versus a 52-week trading range of $36.22 to $147.39. The stock could open at new 52-week highs Wednesday if the gains hold overnight. ALABAstera Labs Inc $150.509.11% Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock Rankings Edge Rankings Momentum 96.87 Growth N/A Quality N/A Value 5.20 Price Trend Short Medium Long Overview NVDANVIDIA Corp $178.10-1.06% Market News and Data brought to you by Benzinga APIs

Astera Labs Stock Is Ripping Higher: What's Driving The Momentum? - Astera Labs (NASDAQ:ALAB)

Astera Labs Inc ALAB shares are soaring Wednesday after the company reported better-than-expected financial results for the second quarter and issued strong guidance. What Happened: Astera Labs reported second-quarter revenue of $191.93 million, beating analyst estimates of $172.54 million, according to Benzinga Pro. The company reported second-quarter adjusted earnings of 44 cents per share, beating estimates of 32 cents per share. Total revenue was up 150% on a year-over-year basis amid a ramp in volume of the company's PCIe 6 connectivity portfolio and expanding design wins of its Scorpio Fabric Switch. "During Q2, 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 and added multiple new design wins for our Scorpio Fabric Switches," said Jitendra Mohan, CEO of Astera Labs. "We also saw strong demand for our signal conditioning portfolio driven by PCIe scale-up and Ethernet scale-out connectivity applications in custom ASIC platforms. Astera Labs is at the forefront of an AI infrastructure transformation, and we are accelerating our investments to realize our vision of rack-scale connectivity in next-generation AI systems." Astera Labs expects third-quarter revenue of $203 million to $210 million versus Benzinga Pro estimates of $180.73 million. The company anticipates third-quarter adjusted earnings of 38 cents to 39 cents per share versus estimates of 34 cents per share. Following the company's quarterly results, Needham maintained Astera Labs with a Buy rating and raised the price target from $100 to $170. Evercore ISI Group maintained an Outperform and raised its price target from $104 to $215. ALAB Price Action: Astera Labs shares were up 27.4% at $172.55 at the time of publication Wednesday, according to Benzinga Pro. Read Next: These Analysts Increase Their Forecasts On Astera Labs After Strong Q2 Results Photo: Piotr Swat/Shutterstock.com ALABAstera Labs Inc$173.1527.8%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum96.87GrowthN/AQualityN/AValue5.20Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Astera Labs (ALAB) Q2 Revenue Soars 150% | The Motley Fool

Astera Labs (ALAB -1.76%), a provider of connectivity solutions for cloud and artificial intelligence (AI) infrastructure, released its results for Q2 FY2025 on August 5, 2025. The report delivered record GAAP revenue of $191.9 million, outpacing analyst expectations of $172.49 million. Non-GAAP earnings per share (EPS) came in at $0.44, well above estimates of $0.32. The quarter marked a strong expansion in both sales and profitability, driven by surging demand for its PCIe 6 portfolio and expanding contributions from its Scorpio fabric switches. In summary, the quarter showcased robust momentum, supported by significant product ramps and deepening strategic partnerships, even as the company continues to focus on diversifying its customer base. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Astera Labs is known for its high-speed connectivity semiconductors and system solutions designed for data centers and cloud infrastructure. The core of its business is the Intelligent Connectivity Platform -- a combination of hardware products and the COSMOS software suite that enables efficient, low-latency data movement inside AI and hyperscale data centers. This platform includes a growing set of products focused on enabling the transition between new generations of CPUs, GPUs, and memory technologies. The business's recent focus has centered on technological innovation, strategic partnerships, and expanding its reach across leading AI platforms with diversified product offerings. Key success factors include the ability to rapidly develop products compatible with changing industry standards, alliances with major technology suppliers, and close collaboration with hyperscale cloud customers. Managing customer concentration remains an ongoing priority, with the company taking steps to broaden its end-market exposure while maintaining its reputation as a trusted provider. Astera Labs delivered record-breaking financial results, driven primarily by surging demand for its PCIe 6 (Peripheral Component Interconnect Express, a high-speed interface for connecting components in data centers) connectivity portfolio. Sales of both Aries and Taurus product lines rose as AI and customized rack-scale systems ramped up, reflecting widespread adoption among leading cloud providers and a new set of custom AI accelerator platforms. The Scorpio fabric switch family -- semiconductor switches designed for high-speed interconnect in server racks -- notched new design wins and entered wider production. The P-Series switches saw shipments to customers building out modular rack applications, while the X-Series began initial revenue shipments and are expected to contribute materially starting in 2026. The COSMOS software suite, which provides visibility and manageability across interconnected hardware, continued to act as a differentiator, allowing for advanced diagnostics and system-level fleet management. Astera Labs expanded its ecosystem in the AI and cloud infrastructure space through deepening relationships with major industry partners. Extended collaboration with NVIDIA solidified its place in the NVLink Fusion ecosystem, while a new partnership with AMD enabled further progress around open connectivity standards through the Ultra Accelerator Link (UALink) Consortium. These collaborations not only enhance product interoperability but also position Astera Labs as a leading contributor to next-generation open standard efforts in memory and compute interconnects. Financially, the company reported a significant improvement in margins and profitability. Non-GAAP operating margin increased by 14.8 percentage points versus the prior-year period, reflecting the impact of higher sales volumes and improved product mix. The business generated $135 million in operating cash flow -- its highest ever -- building its cash and securities position to over $1 billion. Customer concentration continued to pose a risk, as most revenue still came from a small number of hyperscale data center customers, though management noted progress diversifying across ASIC- and GPU-based platforms. Geopolitical and regulatory pressures -- including evolving export restrictions affecting less than 10% of revenues from China -- were flagged as ongoing but manageable at present. The Aries product family comprises PCIe/CXL retimers and, more recently, gearbox products. Retimers ensure signal integrity in high-speed data transfers between CPUs and GPUs, while gearbox devices connect components running on different generations of industry standards -- currently, PCIe 5 and PCIe 6 -- bridging speed and compatibility gaps as data center technology evolves. The Taurus product line features Ethernet smart cable modules, which enable reliable, high-speed copper connections in AI and general computing systems. Continued momentum was reported, with expansion into more customers expected as the market shifts toward 100G-capable AI infrastructure. The Scorpio product line covers smart fabric switches -- a type of networking switch designed for connecting many GPUs or AI accelerators in a single rack. The P-Series is focused on modular, customizable rack designs, while the X-Series (which began shipping in preproduction volumes late in the quarter) is positioned for broader adoption in AI racks and is expected to carry higher average selling prices. The Leo product family, which consists of CXL (Compute Express Link) memory connectivity controllers, is currently shipping in preproduction, with volume qualification and ramp anticipated in the second half of 2025. Strategically, the company's product breadth now allows it to address a larger part of a data center AI rack, serving both merchant GPU systems such as those from NVIDIA and custom AI accelerator-based systems. The business noted material progress in partnerships with ecosystem providers like Alchip Technologies, enhancing its product validation process and opening new opportunities in hyperscaler markets. These moves reflect the company's intent to strengthen its position both as an innovator and a critical supplier for next-generation AI infrastructure. Management guided for GAAP revenue between $203 million and $210 million for Q3 FY2025. Gross margin (GAAP and non-GAAP) is expected to remain near 75%. Non-GAAP diluted earnings per share was guided between $0.38 and $0.39. Non-GAAP operating expenses are set to increase further, reaching between $76 million and $80 million as the company continues to push on new product development and market expansion. Management reiterated that long-term gross margin targets remain around 70%, though the near-term outlook may fluctuate as the product mix evolves.