Astera Labs (ALAB) Raymond James TMT and Consumer Conference summary

Market trends and company positioning

• Identified shift from CPU-centric to heterogeneous compute in data centers, driving need for new connectivity solutions.

• Hyperscalers are increasingly vertically integrating, developing their own chips and accelerators.

• Built a software-defined, cloud-based architecture enabling rapid product iteration and customization.

• Achieved strong market presence, with content in the majority of new AI infrastructure deployments.

• Positioned to benefit from both third-party and internal accelerator ecosystems, not tied to a single vendor.

Product portfolio and innovation

• Focused on rack-level connectivity, addressing protocols like UALink, Ethernet, PCI Express, and CXL.

• Product lines include retimers, controllers, and new fabric devices (Scorpio series) for both copper and optical connections.

• Demonstrated industry's first PCIe over optics as a proof of concept.

• Scorpio X-Series targets GPU-to-GPU interconnect, a nascent but rapidly growing market.

• COSMOS software enables observability, optimization, and customization of connectivity solutions.

Market opportunity and growth outlook

• Total addressable market (TAM) projected at $12 billion by 2028, including $5 billion for fabric devices.

• Retimer TAM estimated at $3 billion by 2028, driven by increasing protocol speeds and complexity.

• CXL and back-end networking are greenfield opportunities, expected to ramp as new server CPUs become CXL capable.

• Revenue grew 47-48% sequentially, supported by nearly 400 design wins and exposure to multiple AI architectures.

• Guidance for next quarter is $113 million, indicating significant headroom for future growth.