Astera Labs (ALAB) TD Cowen's 54th Annual Technology, Media & Telecom Conference summary

Recent performance and growth outlook

• Achieved strong results in recent quarters, with accelerated growth expected in Q2 and optimism for continued inflection in the second half of the year.

• Product portfolio has expanded from core IO connectivity to complex solutions like Leo CXL Memory Controller and Scorpio Smart Fabric Switch.

• Content per accelerator has increased from under $100 to about $1,000, with plans to grow further by layering additional connectivity products.

Product line updates and market opportunities

• Scorpio X-Series is a major growth catalyst, with a $10B+ market opportunity and expanded portfolio shipping in Q2.

• All product lines are growing, driven by secular trends, higher attach rates, and next-gen solutions.

• Taurus is expected to contribute more materially to growth as 800G ramps, with both copper and optical opportunities seen as additive.

• Aries, while declining as a share of revenue, is still growing and transitioning to PCIe Gen 6, with higher ASPs and attach rates expected.

Optical transition and technology investments

• Significant R&D and ecosystem building underway for optical solutions, aiming for optical-based revenue in 2027.

• XScale acquisition brought key fiber coupler technology, with standalone and NPO applications ramping next year.

• Developing an optical engine to integrate with Scorpio X and customer accelerators, aiming for full link accountability.

• Strategy is to be photonics agnostic, offering flexibility for customers to use their own or Astera's PIC technology.