Astera Labs (ALAB) Company Report

Astera Labs' served addressable market (SAM) has expanded from ~$7 billion at its IPO to $14 billion-$15 billion today, driven by the build-out of cloud and AI infrastructure and new product development.
The Aries retimer business, which now accounts for approximately two-thirds of total revenue, is projected to grow ~70% this year and continue growing into next year, with PCIe Gen 6 solutions already comprising over 20% of Q3 business and offering an ~20% ASP lift per generation.
The Scorpio product line, including the P series (head node connectivity) and X series (scale-up clustering), represents a combined incremental market opportunity of ~$5 billion-$5.5 billion. The P series is growing rapidly, and the X series is expected to enter volume production in the first half of next year with multiple customer engagements.
Astera Labs expects its content per accelerator to significantly increase, potentially reaching ~$1,000 with a full suite of its products, including the high-value X Series, and even higher with future UA Link solutions. The company projects Scorpio revenue could potentially surpass retimer revenue by late next year or early 2027.
The UA Link standard, ratified in March 2025, is a new purpose-built solution for AI scale-up networking, with products anticipated to be in customers' hands by the end of next year for 2027 deployments, representing a multi-billion dollar opportunity.

Nov 19, 2025, 3:00 PM

Transcript

Astera Labs discusses market opportunity and product strategy at RBC Conference

ALAB

Product Launch

New Projects/Investments

Revenue Acceleration/Inflection

Astera Labs' total addressable market (TAM) has expanded from $7 billion at its IPO to $14 billion-$15 billion today, driven by new products and market expansion.
The company's retimer business (Aries) is projected to grow close to 70% this year and continue growing into next year, with PCIe Gen 6 solutions currently shipping and expected to drive higher average selling prices (ASPs).
New product lines, including Scorpio P for head node connectivity (approximately $2.5 billion incremental opportunity) and Scorpio X for scale-up clustering (approximately $2.5 billion-$3 billion market opportunity), are expected to drive future growth.
Astera Labs anticipates a significant increase in content per accelerator, potentially reaching $1,000 with a full suite of its products, including the upcoming UA Link.
UA Link products are expected to be in customers' hands by the end of next year (2026) for system qualifications, with initial deployments anticipated in 2027.

Nov 19, 2025, 3:00 PM

Transcript

Astera Labs Discusses Expanding Market Opportunity and Product Roadmap

ALAB

Product Launch

New Projects/Investments

Revenue Acceleration/Inflection

Astera Labs' served addressable market (SAM) has expanded from $7 billion at its IPO to $14 billion-$15 billion today, driven by new product introductions and the growth of cloud and AI infrastructure.
The Aries retimer business is projected to grow close to 70% this year and continue into next year, with PCIe Gen 6 solutions comprising over 20% of the business in Q3.
The company anticipates Scorpio P Series (PCIe switch for scale-out) to continue its rapid growth into next year, and expects Scorpio X Series (PCIe switch for scale-up) to enter volume production in early H1 2026, significantly increasing content per accelerator to multiple hundreds of dollars.
Astera Labs is developing UA Link products for scale-up networking, with products expected for customer qualifications by end of next year and deployments in 2027, representing a multi-billion dollar opportunity.

Nov 19, 2025, 3:00 PM

Transcript

Astera Labs' Leo CXL Smart Memory Controllers Enable CXL Memory Expansion on Azure M-series VMs

ALAB

Product Launch

New Projects/Investments

Astera Labs' Leo CXL Smart Memory Controllers are enabling customers to evaluate Compute Express Link (CXL) memory expansion capabilities for their specific workloads in the Azure M-series virtual machines (VMs) preview.
This collaboration with Microsoft represents the industry's first announced deployment of CXL-attached memory.
The CXL technology aims to overcome the "memory wall" bottleneck by allowing memory expansion beyond the limitations of CPU-attached DRAM, providing cloud providers with the flexibility to scale memory capacity and performance.
The Leo CXL Smart Memory Controllers support CXL 2.0 with up to 2TB of memory capacity per controller, which can scale server memory capacity by more than 1.5x to address enterprise workloads such as in-memory databases and big data analytics, as well as AI inference applications.

Nov 18, 2025, 9:30 PM

Press Release

Astera Labs Reports Strong Q3 2025 Results and Announces Xscale Photonics Acquisition

ALAB

Earnings

M&A

Product Launch

Astera Labs reported strong Q3 2025 financial results, with revenue of $230.6 million, marking a 104% increase year-over-year, and achieved a record non-GAAP operating margin of 41.7%.
The company issued Q4 2025 revenue guidance between $245 million and $253 million, projecting a 6%-10% sequential increase.
In October 2025, Astera Labs entered an agreement to acquire Xscale Photonics to develop photonic scale-up solutions, with material revenue from optical products expected in the 2028-2029 timeframe.
Key product lines, including Scorpio P Series, Aries PCIe 6 (contributing over 20% of Q3 revenues), and Taurus, drove growth, while the Scorpio X Series volume ramp is anticipated throughout 2026 and ULink solutions are expected to generate early revenues in 2027.

Nov 4, 2025, 9:30 PM

Transcript

Astera Labs (ALAB) Reports Strong Q3 2025 Results and Provides Q4 2025 Guidance

ALAB

Earnings

Guidance Update

M&A

Astera Labs (ALAB) reported strong Q3 2025 financial results, with revenue of $230.6 million, marking a 104% increase year-over-year, and achieved a record non-GAAP operating margin of 41.7%. Non-GAAP diluted earnings per share for the quarter was $0.49.
For Q4 2025, the company expects revenue to be between $245 million and $253 million, with non-GAAP gross margins of approximately 75% and non-GAAP diluted earnings per share of approximately $0.51.
Growth in Q3 was broad-based across product lines, with Scorpio P Series continuing its volume ramp, Aries PCIe 6 solutions contributing over 20% of Q3 revenues, and Taurus driving strong growth in 400 Gb scale-out connectivity.
Astera Labs announced the acquisition of Xscape Photonics in October 2025 to develop photonic scale-up solutions, with material revenue from optical products anticipated in the 2028-2029 timeframe. The company also expects early revenues from UALink solutions in 2027.

Nov 4, 2025, 9:30 PM

Transcript

Astera Labs Reports Strong Q3 2025 Results, Acquires Xscale Photonics, and Provides Q4 Guidance

ALAB

Earnings

Guidance Update

M&A

Astera Labs reported strong Q3 2025 financial results, with revenue of $230.6 million, up 104% year-over-year and 20% quarter-over-quarter, achieving a record non-GAAP operating margin of 41.7% and non-GAAP diluted EPS of $0.49.
For Q4 2025, the company expects revenue between $245 million and $253 million, an increase of 6%-10% from Q3, with non-GAAP gross margins projected at approximately 75%.
In October, Astera Labs announced the acquisition of Xscale Photonics to develop photonic scale-up solutions, with material revenue from optical products expected earliest in the 2028-2029 timeframe.
Product growth was broad-based, with PCIe 6 solutions contributing over 20% of Q3 revenues, and the Scorpio X Series volume ramp anticipated throughout 2026.
The company expects ULink solutions to be available in H2 2026 with early revenues in 2027, and 800G Taurus solutions to begin impacting revenue in early 2026.

Nov 4, 2025, 9:30 PM

Transcript

Astera Labs Reports Q3 2025 Financial Results and Provides Q4 2025 Outlook

ALAB

Earnings

Guidance Update

M&A

Astera Labs announced record quarterly revenue of $230.6 million for the third quarter of fiscal year 2025, representing a 20% sequential increase and 104% year-over-year growth.
For Q3 2025, the company reported GAAP diluted earnings per share of $0.50 and non-GAAP diluted earnings per share of $0.49.
The company provided a financial outlook for Q4 2025, estimating revenue between $245 million and $253 million and non-GAAP diluted earnings per share of approximately $0.51.
Astera Labs entered into a definitive agreement to acquire aiXscale Photonics GmbH to enhance its photonic scale-up solutions for AI infrastructure.

Nov 4, 2025, 9:09 PM

8-K

Astera Labs to Acquire aiXscale Photonics

ALAB

M&A

New Projects/Investments

Astera Labs has entered into a definitive agreement to acquire aiXscale Photonics GmbH.
The acquisition is expected to enable Astera Labs to develop photonic scale-up solutions by combining aiXscale's fiber-chip coupling technologies with Astera Labs' existing connectivity and signal processing portfolio.
This strategic move aims to address the demand for advanced optical connectivity and photonic chiplets in AI Infrastructure 2.0, which requires massive bandwidth for scale-up systems with AI accelerators.
The transaction is subject to customary closing conditions.

Oct 22, 2025, 8:04 PM

Press Release

Astera Labs to Acquire aiXscale Photonics

ALAB

M&A

New Projects/Investments

Astera Labs, Inc. announced on October 22, 2025, that it has entered into a definitive agreement to acquire aiXscale Photonics GmbH.
The acquisition is expected to enable Astera Labs to develop photonic scale-up solutions for AI Infrastructure 2.0.
This deal aims to combine aiXscale's fiber-chip coupling technologies with Astera Labs' connectivity and signal processing portfolio to accelerate the deployment of rack-scale solutions.
The transaction is subject to customary closing conditions.

Oct 22, 2025, 8:03 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for Astera Labs.

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