Astera Labs Shares Surge 19% on Strong Q3 Results and Positive Outlook

SANTA CLARA, California - Astera Labs, Inc. (NASDAQ:ALAB), a leader in semiconductor-based connectivity solutions for cloud and artificial intelligence infrastructure, reported strong third-quarter results and provided positive forecasts. Following these developments, the company’s shares rose by 19% in after-hours trading.

For the quarter ending September 30, 2024, the company announced adjusted earnings of $0.23 per share on revenue of $113.1 million. Revenue increased by 206% year-over-year and 47% compared to the previous quarter, reaching a record sales level for the fifth consecutive time. Astera Labs did not provide a comparison to analyst estimates for the reported quarter.

Looking ahead, Astera Labs projected its fourth-quarter revenue to be between $126 million and $130 million, significantly above the consensus estimate of $108.4 million. The company also forecasted non-GAAP earnings per share between $0.25 and $0.26, exceeding analysts' expectations of $0.18.

CEO Jitendra Mohan commented, "Our business has now entered a new phase of growth, with multiple product families emerging on AI platforms that leverage both third-party GPUs and internally developed AI accelerators."

The strong results and outlook were driven by expanding market opportunities, particularly from the introduction of the new Scorpio Smart Factory Keys that increase dollar content in Astera Labs' AI platforms.

Astera Labs reported a non-GAAP gross margin of 77.8% for the third quarter. The company's non-GAAP operating income was $36.6 million, resulting in an operating margin of 32.4%.

During the quarter, Astera Labs introduced its new portfolio of Scorpio Smart Factory Keys specifically designed for cloud-scale AI infrastructure. The company also joined the Ultra Accelerator Link Consortium as a promotional member, positioning itself to contribute to the development of UALink technology for high-speed AI accelerator connectivity.