Astera Labs Has Found Its Next Growth Engine

Astera's Q2 revenue grew 104% YoY, while Q3 guidance implies roughly 40% sequential growth as Scorpio accelerates. Scorpio should become Astera's largest product family one quarter early, with future content exceeding $1,000 per XPU. UALink, optics, Leo, and COSMOS could compound Astera's content opportunity across switching, memory connectivity, and workload orchestration. ALAB trades at 75.4x FY1 earnings, but that multiple compresses to 37.6x FY3 as expected earnings scale rapidly.

While the 104% Q2 revenue growth in Astera Labs (ALAB) is definitely an important data point for my bullish call, which played out handsomely, delivering 150% in under 5 months, the most interesting thing about the company is its expanding opportunity across multiple product families.