The Zhitong Finance App learned that Astera Labs (ALAB.US) became the focus of market attention on Monday. Barclays Bank covered the semiconductor connectivity company for the first time after the company's quiet initial public offering (IPO) period ended, giving it an increase rating. The target share price was 85 US dollars. As of press time, the company's shares were up 2.82% in pre-market trading.

Analyst Tom O'Malley (Tom O'Malley) wrote in an investor note: “Astera Labs is uniquely positioned as a pioneer and early market leader in data center connectivity products. This product field is at the intersection of emerging secular trends such as artificial intelligence and cloud computing. “Astera's products are centered around enabling high-speed data transmission and overall system bandwidth expansion within and between data center computing platforms and across multiple protocols (PCIe, CXL, Ethernet).”

O'Malley added that the wave of investment brought about by artificial intelligence has made airborne and non-airborne connectivity innovation “increasingly important,” and with its software products, strong relationships with large-scale data service providers, and an “industry-leading operating model,” this wave has also fueled Astera's outstanding performance.

O'Malley said that in 2023, more than 70% of Astera's revenue came from artificial intelligence, which is expected to increase to more than 80% this year, and its largest product, Aries, has an additional rate of over 90% in large-scale AI server deployments. Aried accounts for almost “all” of Astera's revenue.

Its second product line, called Taurus, is expected to be an “inflection point” in the broader 800GAEC application next year and will be “highly correlated” with custom dedicated integrated circuit ramps.

O'Malley said it is expected that by 2025, the compound annual growth rate of the company's revenue will reach about 90%. Currently, gross margin will exceed 75%, and is expected to remain above 70% for a long time.