Astera Labs Soars 70% in IPO as Investors Bet on AI Chipmaker's Data Center Growth
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Chipmaker Astera Labs struck while the iron was hot with its recent IPO amid investor enthusiasm for AI companies. Its stock surged over 70% from its IPO price in early trading.
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Astera makes connectivity chips for cloud and AI data centers. Revenue grew 45% last year to $115.8 million as hyperscalers adopt its products.
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Its chips address critical bottlenecks in AI infrastructure related to bandwidth, speed, scalability. Products are named Aries, Taurus, Leo.
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Astera sizes its total addressable market at $17.2 billion currently, growing to $27.4 billion by 2027 as data center spending booms.
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Its focus on cloud and AI infrastructure gives it deep customer understanding. Competitors include Broadcom, Credo, Marvell, Microchip.