Astera Labs late Monday beat Wall Street's targets for the third quarter and with the chipmaker's guidance for the current period. Astera Labs stock rocketed in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 23 cents a share on sales of $113.1 million in the September quarter. Analysts polled by FactSet had expected earnings of 17 cents a share on sales of $97.5 million.
Astera Lab's revenue rose 47% from the June quarter and 206% from the September quarter last year.
"Our business has now entered a new growth phase with multiple product families ramping across AI platforms based upon both third-party GPUs (graphics processing units) and internally developed AI accelerators," Chief Executive Jitendra Mohan said in a news release.
He added, "With (an) expanding product portfolio including the new Scorpio Fabric Switches, we are cementing our position as a critical part of AI connectivity infrastructure, delivering increased value to our hyperscaler customers, and unlocking additional multiyear growth trajectories for Astera."
Astera Labs Stock Blasts Off
In after-hours trading on the stock market today, Astera Labs stock rose more than 18% to 82.76. During the regular session Monday, Astera Labs stock fell 4.1% to close at 69.65.
For the current quarter, Astera Labs expects to earn an adjusted 26 cents a share on sales of $128 million. That's based on the midpoint of its guidance. Wall Street was modeling earnings of 18 cents a share on sales of $107.9 million in the fourth quarter.
Astera Labs makes connectivity chips for cloud and artificial intelligence data centers. Astera's products are focused on high-speed data transfer and overall system bandwidth expansion in data center computing systems. Its products address critical bottlenecks in AI infrastructure.
Astera's products span multiple form factors including integrated circuits, boards and modules that are built upon a software architecture called Cosmos. Cosmos is an acronym for its Connectivity System Management and Optimization Software.
Astera Labs started trading on March 20 at an initial public offering price of 36. It notched a record high of 95.21 on March 26 before retreating.
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