New design center to focus on cutting-edge AI fabrics and emerging AI inference technologies Industry veteran Guy Azrad to lead operations as general manager of Astera Labs Israel SAN JOSE, Calif. and TEL AVIV, Israel, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure, today announced a significant expansion of its global engineering operations with the establishment of an advanced research and develop ...

Group 1 - Astera Labs will participate in financial conferences during Q1 2026, including the 28th Annual Needham Growth Conference on January 14 and the Morgan Stanley Technology, Media & Telecom Conference on March 3 [1][3] - A webcast of the conference sessions will be available on Astera Labs' investor relations website [1] Group 2 - Astera Labs specializes in semiconductor-based connectivity solutions for rack-scale AI infrastructure, collaborating with hyperscalers and ecosystem partners [2] - The company's Intelligent Connectivity Platform integrates various semiconductor technologies, including CXL, Ethernet, NVLink, PCIe, and UALink™, along with the COSMOS software suite [2] - Astera Labs offers both custom connectivity solutions and a standards-based portfolio to meet diverse infrastructure requirements [2]

Core Viewpoint - Astera Labs, Inc. will release its financial results for Q4 2025 on February 10, 2026, and will host a conference call to discuss these results [1][2]. Group 1: Financial Results Announcement - The financial results for the fourth quarter of 2025 will be announced after market close on February 10, 2026 [1]. - A conference call will be held at 1:30 p.m. Pacific Time, featuring key executives including the CEO, COO, and CFO [2]. Group 2: Company Overview - Astera Labs specializes in semiconductor-based connectivity solutions for rack-scale AI infrastructure [3]. - The company collaborates with hyperscalers and ecosystem partners to enhance the capabilities of modern AI [3]. - Astera Labs' Intelligent Connectivity Platform integrates various semiconductor technologies and software to create flexible systems for connectivity [3].

Company Overview - Astera Labs, Inc. develops semiconductor-based connectivity solutions specifically designed for cloud and AI infrastructure, featuring an Intelligent Connectivity Platform that includes high-speed, mixed-signal semiconductor products and a proprietary system management software suite called COSMOS [11]. Investment Insights - Astera Labs is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a moderate investment potential [12]. - The company has a Momentum Style Score of B, and its shares have increased by 1.2% over the past four weeks, suggesting positive short-term performance [12]. - In the last 60 days, eight analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate rising by $0.20 to $1.78 per share, reflecting improved earnings outlook [12]. - Astera Labs has demonstrated an average earnings surprise of +29.8%, indicating a strong track record of exceeding earnings expectations [12]. Conclusion - With a solid Zacks Rank and favorable Momentum and VGM Style Scores, Astera Labs is positioned as a noteworthy option for investors seeking opportunities in the semiconductor sector [13].

Group 1 - Astera Labs is a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure [1][2] - The company will participate in several financial conferences in Q4 2025, including the RBC Capital Markets Global Technology Conference, Raymond James TMT & Consumer Conference, and Barclays 23rd Annual Global Technology Conference [1][3] - Presentations at these conferences are scheduled for November 19, December 9, and December 11, 2025, respectively [3] Group 2 - Astera Labs provides purpose-built connectivity solutions that integrate CXL, Ethernet, PCIe, and UALink™ technologies with the COSMOS software suite [2] - The company's Intelligent Connectivity Platform aims to unify diverse components into cohesive systems that enhance end-to-end connectivity for modern AI applications [2]

Market Overview - The equity markets experienced an upward rally in Q3 2025, with the S&P 500 Index increasing by 8.12% [1] - Improved economic conditions, strong corporate earnings, and anticipation of monetary easing contributed to the market's strong performance [1] Fund Performance - The Class A shares of the Alger Mid Cap Growth Fund outperformed the Russell Midcap Growth Index during the quarter [1] - The fund's investor letter provides insights into its top-performing and underperforming stocks [1] Astera Labs, Inc. Overview - Astera Labs, Inc. specializes in manufacturing semiconductor-based connectivity solutions for cloud and AI infrastructure [2] - The stock had a one-month return of -3.52% but appreciated by 78.31% over the past 52 weeks, closing at $157.79 per share with a market capitalization of $26.651 billion on November 12, 2025 [2] Astera Labs, Inc. Performance Insights - Astera Labs' products help large-scale computing systems move data quickly and efficiently, reducing bottlenecks in data flow [3] - The company's Intelligent Connectivity Platform combines specialized hardware with COSMOS software, providing flexible and cost-effective solutions [3] - Astera is positioned well in fast-growing markets like AI and cloud computing, supported by strong partnerships with leading technology providers [3] - The company reported better-than-expected fiscal Q2 results and raised revenue guidance for the next quarter, contributing positively to its stock performance [3] - Near-term growth is driven by the P-series switches, with management expressing confidence in the upcoming X-series switches as a potential major revenue contributor starting in 2026 [3]

Core Insights - Astera Labs reported a record revenue of $230.6 million for Q3 2025, reflecting a 20% sequential growth and a 104% year-over-year increase, driven by strong demand in AI platform production [2][4][5] - The company anticipates continued momentum in PCIe 6 and robust growth from Taurus Ethernet SCMs in Q4 2025, supported by the proposed acquisition of aiXscale Photonics to enhance connectivity solutions [2][5] Financial Performance - Q3 2025 financial highlights include: - GAAP gross margin of 76.2% and operating income of $55.4 million, resulting in a GAAP operating margin of 24.0% [5][19] - Non-GAAP gross margin of 76.4% and operating income of $96.1 million, leading to a non-GAAP operating margin of 41.7% [5][25] - GAAP net income of $91.1 million, with diluted earnings per share of $0.50 [5][19] - Non-GAAP net income of $88.2 million, with non-GAAP diluted earnings per share of $0.49 [5][25] Strategic Initiatives - The company entered into a definitive agreement to acquire aiXscale Photonics, which specializes in fiber-chip coupling technologies, to enhance its AI infrastructure capabilities [5][6] - Astera Labs showcased its AI rack-scale vision at the 2025 Open Compute Project Global Summit, demonstrating a full portfolio of connectivity solutions based on open standards [5][15] - Collaborations with major industry players such as AMD, Arm, and others aim to accelerate the deployment of AI Infrastructure 2.0 through open standards [5][15] Fourth Quarter Outlook - For Q4 2025, Astera Labs estimates revenue between $245 million and $253 million, with a GAAP gross margin of approximately 75% and a non-GAAP gross margin also around 75% [9][32] - The company expects GAAP diluted earnings per share of approximately $0.20 and non-GAAP diluted earnings per share of approximately $0.51 [9][32]

Core Insights - Astera Labs has announced a definitive agreement to acquire aiXscale Photonics GmbH, aiming to enhance its capabilities in photonic chiplet development for AI Infrastructure 2.0 [1][2][3] - The acquisition is expected to combine aiXscale's fiber-chip coupling technologies with Astera Labs' existing connectivity and signal processing solutions, facilitating the deployment of rack-scale AI infrastructure [1][3][4] Company Overview - Astera Labs specializes in semiconductor-based connectivity solutions tailored for rack-scale AI infrastructure, focusing on high-speed, power-efficient, and reliable optical connectivity [2][5] - The company collaborates with hyperscalers and ecosystem partners to optimize modern AI capabilities through its Intelligent Connectivity Platform, which integrates various semiconductor technologies [5] Industry Context - The transition to AI Infrastructure 2.0 necessitates advanced optical solutions to meet the increasing complexity and capacity demands of future scale-up networks [2][3] - Photonic chiplets are identified as a crucial technology for achieving the performance and efficiency required for advanced AI infrastructure, particularly in systems with numerous AI accelerators [2][3]

Group 1 - Astera Labs Inc. (NASDAQ:ALAB) experienced a significant decline of 19.03% to close at $161.55, marking its third consecutive day of losses due to intense competition in the GPU market [1][4] - The drop in Astera Labs' stock price was influenced by Advanced Micro Devices' (AMD) partnership with Oracle to deploy 50,000 GPUs starting in Q3 2026, which raised concerns about reduced demand for Astera's products [2][4] - Astera Labs announced a collaboration with Arm Total Design to develop chiplet solutions aimed at meeting the increasing demand for custom AI infrastructure [2][4] Group 2 - Chiplet architectures allow AI platform developers to integrate various processing units, including Arm compute subsystems, into optimized systems for specific functions [3] - As a design services partner in Arm Total Design, Astera Labs will provide multi-protocol chiplet capabilities through its Intelligent Connectivity Platform, facilitating the creation of custom AI infrastructure with validated connectivity [4]

Core Insights - Astera Labs has joined Arm Total Design to enhance custom SoC development for AI infrastructure, combining its Intelligent Connectivity Platform with Arm Neoverse Compute Subsystems [1][4] - The shift towards chiplet-based designs is driven by the complex integration requirements of rack-scale AI infrastructure, as traditional monolithic designs face yield and cost limitations [2][3] - The collaboration aims to accelerate time-to-market for customers by providing validated, interoperable connectivity solutions, enabling the development of differentiated AI infrastructure [3][4] Company Overview - Astera Labs specializes in semiconductor-based connectivity solutions for rack-scale AI infrastructure, focusing on open standards and collaboration with hyperscalers [5] - The company's Intelligent Connectivity Platform integrates various technologies, including CXL, Ethernet, PCIe, and UALink, to create flexible systems for AI applications [5] Industry Trends - The demand for custom AI infrastructure is increasing, necessitating more flexible architectures that can integrate diverse processing units and components [2][3] - The collaboration between Astera Labs and Arm is positioned to capitalize on the expanding custom AI infrastructure market, providing customers with access to a comprehensive ecosystem [4]