Astera Labs Soars 46% in IPO as Investors Bet on AI Infrastructure
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Astera Labs, a cloud computing hardware company, started public trading at $52.56 per share, a 46% increase over its IPO price of $36 per share.
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The company is benefitting from high demand for tech related to AI, with its revenue jumping 45% last year to $115.8 million.
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Astera's valuation leapt to around $8.9 billion, well above its last private valuation of $3.1 billion.
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As a hardware provider tied to AI infrastructure buildout, Astera offers a purer play on AI trends than Reddit's more mixed business model.
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Astera's strong first day trading could encourage more late-stage startups to pursue IPOs despite down rounds, as VCs see the potential for pops.