Renato Neves, CFA
1 min read
This article first appeared on GuruFocus.
Astera Labs Inc. (NASDAQ:ALAB), which makes connectivity chips for rack-scale AI infrastructure, rose 3.96% in premarket after it reported record quarterly revenue of $584.9 million. That was up 154% year over year and 49% sequentially, and it beat analysts’ consensus of $550.78 million. Non-GAAP EPS of $1.32 topped the $1.19 estimate, and GAAP EPS came in at $0.99.
Scorpio fabric switches became Astera’s largest product family, led by volume production of the 320-lane Scorpio X-Series. Non-GAAP operating margin widened to 44.7% from 41.7% a year earlier. Non-GAAP gross margin moved the other way, slipping to 72.4% from 76.4% a year earlier and from 73.7% in the second quarter. Inventory climbed to $200.9 million from $59.0 million at the end of 2025. CEO Jitendra Mohan said the platform’s expansion and new design wins position the company to strongly grow our dollar content per accelerator.
For the fourth quarter, Astera guided revenue to $730 million to $750 million, non-GAAP gross margin to about 72% and non-GAAP EPS to $1.62 to $1.66. It expects to begin sampling its Aries 7 PCIe 7 signal-conditioning portfolio in the fourth quarter. Its Orion rack-scale reference designs are on track to reach customers through OEM and ODM partners starting in the first quarter of 2027.
