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

Recent performance and growth outlook

• Reported strong results 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.

• All product lines are expected to grow sequentially through Q3, Q4, and into next year, driven by secular trends and higher attach rates.

Product portfolio and market opportunities

• Scorpio X-Series is a major growth catalyst, representing a $10B+ market opportunity and nearly half of the total addressable market.

• Pre-production volumes of Scorpio X-Series shipped in late 2025, with early volume production in Q1 and expanded portfolio shipping in Q2.

• Taurus is expected to contribute more materially to growth as the main customer ramps 800G, with the AEC market still in early stages and expected to grow.

• Aries, while declining as a share of revenue, continues to grow and is transitioning to PCI Express Gen 6, with higher ASPs and attach rates expected.

Optical transition and technology investments

• Significant R&D investment in optical technologies, with optical-based revenue targeted for 2027.

• XScale acquisition brought key fiber coupler technology, enabling standalone and integrated optical solutions.

• Development of an optical engine to support CPO solutions and integration with customer AI accelerators is underway.

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