Astera Labs Soars Over 72% in First Day of Trading

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published March 20, 2024
Astera Labs Inc. log shown on a smartphone and PC screen

Pavlo Gonchar / SOPA Images / LightRocket / Getty Images

Key Takeaways

  • Astera Labs shares jumped over 72% in their first day of trading Wednesday as the semiconductor-based connectivity solutions provider benefited from demand for artificial intelligence (AI).
  • Shares opened well above Astera Labs' IPO price of $36, which was higher than expected.
  • CEO Jitendra Mohan said the company sees AI as "the wave of the future."

Astera Labs (ALAB) is the latest technology firm to benefit from the artificial intelligence (AI) boom, as its shares soared over 72% Wednesday in the company’s first day of trading.

Astera priced its initial public offering (IPO) at $36 per share, well above the expected range of $32 to $34 that was up from $27 to $30 previously. The 19.8 million shares sold raised $712.8 million.

Astera said Tuesday that it expected proceeds from the offering before expenses to be about $604 million. The company said it won't receive any proceeds from the sale of shares by selling stockholders.

Astera Labs shares opened trading on the Nasdaq at $52.56 apiece, and closed at $62.03.

Astera Labs makes chip-based connectivity products to boost the efficiency of AI. It noted in its prospectus that graphics processing units (GPU) and other AI accelerators “often sit idle waiting for data to become available.” It said that increasing the use of AI hardware is “a massive opportunity for connectivity suppliers.”

Co-founder and CEO Jitendra Mohan told CNBC the company views AI as a very big market in the “very early stages of development.” He added “we have a decade of growth in front of us,” and that “AI is going to be the wave of the future.”

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  1. Astera Labs Inc. "Astera Labs Announces Pricing of Initial Public Offering."

  2. Astera Labs Inc. "FORM S-1."

  3. CNBC. “AI Is Still in the Early Stages of Development, Says Astera Labs CEO."

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