Astera Labs IPO: Everything you need to know about Astera Labs

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By :  ,  Financial Writer

What do we know about the Astera Labs IPO?

Astera Labs is expected to debut on the New York Stock Exchange sometime in 2024. The fabless semiconductor firm has appointed Morgan Stanley and JPMorgan Chase & Co. as lead underwriters. The company floated the idea of an IPO in 2022 before backing down due to the tepid market.

Instead, Astera Labs has spent the last year expanding its portfolio and raising funds. In 2022 the company opened new research and development centres in Toronto and Vancouver.

It raised $150 million in a series D led by Fidelity Management & Research in late 2022. Veteran investors including Intel Capital also participated.

Keep reading to learn more about Astera Labs including its most recent valuation and competitor landscape.

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What is Astera Labs?

Astera Labs is a fabless semiconductor company headquartered in Silicon Valley. That means Astera Labs designs and sells semiconductor technology, but the production is contracted out to other specialized manufacturers.

Founded in 2017, the firm focuses on enabling hyper-scale infrastructure by improving connectivity, and thus the speed and bandwidth of its semiconductors. Specifically, Astera Labs hopes to fill gaps in the flourishing AI and machine learning sectors where innovation continues to run up against a ‘memory wall.’  

Semiconductor manufacturing has seen huge growth alongside the development of hyper-scale data centres. Hundreds of billions of dollars have been invested in the global market this year alone, and national governments of Europe, China and the United States have each invested tens of billions in subsidies for their domestic industries.

How much is Astera Labs worth?

Astera Labs was last valued at $3.15 billion following the completion of its series D funding round in November 2022. Investors of Astera Labs include Microsoft, Amazon, NVIDIA, Fidelity Management and Research, Atreides Management, Intel Capital and Sutter Hill Ventures.

Is Astera Labs profitable?

Since Astera Labs has not yet publicly filed for an IPO, there is no public earnings report data to analyse if the company is profitable. However, Forbes estimated the semiconductor company reached $100 million in revenue for 2022, up from an estimated $35 million the year before.

What is Astera Labs’s business model?

Astera Labs’s business model focuses specifically on increasing semiconductor connectivity in an effort to keep up with the rapid pace of hyperscale data centres. This limitation is prevalent in data centres serving AI and machine learning technologies, as well as cloud processing, where memory bandwidth and capacity can bottleneck.

The firm has used its recent funding to open two new international research and development centres in Canada, grow its workforce and expand its product lines. The company recently debuted its newest microprocessor model, the Leo CXL Memory Connectivity Platform, in September 2023.

Astera Labs’s fabless development means it only designs semiconductors before sending those plans to Taiwan Semiconductor Manufacturing Co., an investor and industry behemoth. Astera Labs’s founders claim this production method drastically reduces development time and allows the company to continue developing new microchip models faster.

Who are Astera Labs’s competitors?

Astera Labs has attempted to differentiate itself from competitors by focusing on increasing connectivity in semiconductors. However, there are still competitors for the California start-up. Other fabless semiconductor developers include Qualcomm, Broadcom, NVIDIA, AMD and MediaTek. Together those companies held 88% of the market share at the end of 2022.

Another fabless semiconductor producer, ARM, recently debuted in September 2023 raising $4.87 billion. Its customers include several Astera Labs investors including Intel, Apple, NVIDIA, and TSMC.

Astera Labs management team

The management team of Astera Labs includes its three co-founders from 2017 and several other key executives.

  • Jitendra Mohan: CEO & co-founder
  • Sanjay Gajendra: COO & co-founder
  • Casey Morrison: CPO & co-founder
  • Mike Tate: CFO
  • Philip Mazzara: general counsel & secretary
Related tags: Insights IPO Tech

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