Astera Labs (ALAB) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Financial performance and outlook

• Q1 revenue reached $159 million, up 13% sequentially and 144% year-over-year, with 74.9% gross margins and $0.33 non-GAAP EPS, beating expectations.

• Q2 revenue is guided at $170–$175 million, driven by continued growth in Aries and Taurus lines and the first volume shipments of Scorpio.

• 2024 revenue is tracking toward $700 million, about 70% higher than estimates a year ago, with EPS power at $1.35, 2.5x above prior forecasts.

• Revenue CAGR of 35%-40% and EPS CAGR of 45%-50% are anticipated over the next 2–3 years.

• Gross margin guidance remains at 70% long-term, with current margins above target due to high-value product mix.

Product and technology developments

• Aries retimer family and Taurus smart cable modules are key revenue drivers, especially for AI scale-up and scale-out connectivity.

• Scorpio family, including P and X series, is ramping, with Scorpio expected to drive significant growth in 2025 and Scorpio X in 2026.

• Leo platform for general compute and memory expansion is set for meaningful revenue in 2026.

• PCIe Gen six retimers are qualifying and ramping, with Gen five still seeing strong adoption; Gen six will build momentum into 2026.

• Cosmos software platform is a major differentiator, providing diagnostics and management, and is deeply integrated with customer systems.

Market and customer dynamics

• AI and data center CapEx spending remains robust, with no negative changes in customer programs or demand outlook.

• Custom ASIC XPU accelerators are increasing in share, but both merchant GPU and ASIC platforms are supported, with content per GPU rising significantly for scale-up solutions.

• Inference workloads are growing rapidly, requiring more compute and benefiting rack-level solutions; most inference is expected to remain on GPUs.

• Strong engagement and design wins for Scorpio switches, with a large addressable market and increasing customer deployments.

• UALink is positioned as a unifying industry standard for rack-level connectivity, with Astera as a promoter member.