Astera Labs

Astera brought in a record 584.9 million dollars this quarter. That is up 154% from a year ago and up 49% in just three months. It is also very profitable, earning 182.9 million dollars, which is about 31 cents of profit on every dollar of sales. The company expects 730 to 750 million dollars next quarter, roughly another 25% jump in a single quarter.

Scorpio switches became Astera's largest product family this quarter, led by its 320-lane switch reaching high-volume production. That moves Astera from making small helper chips to directing traffic for entire AI systems. New memory, optical cable, and full rack products are all aimed at earning Astera more dollars for every AI chip a customer installs.

Astera is valued at roughly 40 billion dollars, a price that already assumes years of huge growth. The stock also moves about four times as much as the overall market. Any hint that AI spending is cooling could knock it down hard, so even a record quarter does not promise a calm ride.

Astera kept 72.3% of each sales dollar after the cost of making its chips this quarter. That is down from 73.3% last quarter, and the company expects about 72% next quarter, because big switches earn less per dollar than the small chips that built the company. A handful of giant cloud customers still bring in most of the sales, and new bets like the Orion rack design will not reach customers until early 2027.