Astera Labs Inc. reported second-quarter 2025 earnings that far outpaced Wall Street forecasts, posting earnings of $0.44 a share on revenue of $191.9 million. Analysts had expected just $0.11 and $172.5 million respectively. Revenue rose 150% from a year earlier, powered by surging demand for the company’s connectivity chips used in artificial-intelligence data centers. For the current quarter, the Santa Clara-based company projected earnings of $0.38 to $0.39 a share on revenue of $203 million to $210 million, again above consensus estimates of $0.34 and $180.7 million. Management cited a volume ramp of its PCIe 6 products, new Scorpio Switch design wins, and deeper collaborations with Nvidia, AMD through the UALink consortium, and Taiwanese chip designer Alchip. The blowout results and raised outlook sent Astera Labs shares up about 9% in after-hours trading and as much as 35% the following day. Evercore ISI lifted its price target to $215, describing the quarter as a “big beat, big raise” and arguing the company is hitting its stride in the AI hardware cycle.