Astera Labs (ALAB) investor relations material

Market opportunity and growth outlook

• Addressable market has expanded from $7B at IPO to $14–$15B, driven by cloud and AI infrastructure growth and new product introductions.

• Retimer business, initially over 90% of revenue, is now about two-thirds, with 70% growth expected this year and continued expansion into next year.

• PCIe Gen 6 transition and new accelerator adoption are expected to drive higher attach rates and ASPs, with a 20%+ ASP lift per generation.

• Scorpio product line, including P and X series, adds multi-billion dollar incremental opportunities, with X series and UA Link further expanding TAM.

• Visibility into design wins extends 12–18 months, with product development focused on 2027–2028 launches.

Product and technology roadmap

• Retimers remain a core business, with strong momentum in both GPU and custom ASIC accelerator markets.

• PCIe Gen 6 solutions are shipping in volume, with no known competitors at scale; learnings from Gen 5 provide a competitive edge.

• Scorpio P (scale-out PCIe switch) is ramping well, with new design wins expected to contribute to growth in 2026.

• Scorpio X (scale-up switch) is in pre-production, with volume production and customer adoption expected in the first half of next year.

• UA Link standard ratified in March, with products expected for customer qualification in late next year and deployments in 2027.

Competitive positioning and differentiation

• Holds incumbent position in PCIe Gen 6 retimers and switches, with a significant lead in shipping volume.

• Differentiation comes from early focus on AI server trends, robust hardware, and a software stack enabling hyperscalers to optimize data center productivity.

• Embedded sensors and APIs allow proactive fleet management, making solutions highly valuable for large-scale data centers.

• Content per accelerator has grown from $50–$100 (retimers) to nearly $1,000 with full platform adoption, with further upside from UA Link.