Overview
- Astera Labs reported Q2 revenue rose 104% year over year to $392.4 million and non‑GAAP EPS of $0.80 beat consensus.
- The company brought Scorpio X into volume production one quarter ahead of plan, and PCIe 6 products now account for more than half of revenue.
- Management guided to roughly 40% sequential revenue growth for Q3 and said operating margins should expand even as investment continues.
- Astera is investing in COSMOS software, CXL controllers, optical links and Taurus to move from component sales toward a full AI connectivity platform that could raise customer switching costs.
- An analyst downgraded the stock, citing an elevated valuation near 35x 2026 forward sales despite reaffirming the longer‑term growth thesis and noting the risk of volatile investor reactions.