Astera Labs Inc. reported strong financial results for the second quarter of fiscal year 2025, with revenue reaching $191.9 million, exceeding estimates of approximately $180.7 million and marking a 150% year-over-year increase. The company posted an adjusted earnings per share (EPS) of $0.44, surpassing the consensus estimate of $0.11. GAAP diluted EPS was $0.29. Gross margin stood at 76.0% (GAAP gross margin 75.8%), and operating income was $39.8 million, representing an operating margin of 20.7%. Net income reached $51.2 million, while operating cash flow was $135.4 million. Sequentially, revenue increased by 20%. For the third quarter of fiscal 2025, Astera Labs provided guidance of revenue between $203 million and $210 million, above the estimated $180.7 million, and adjusted EPS between $0.38 and $0.39, also above estimates. The company’s growth has been driven by increased volume ramp of PCIe 6 products and wins with Scorpio Switch, as well as expanded collaborations with NVIDIA, AMD (UALink), and Alchip in AI infrastructure. Institutional investors have shown increased confidence, raising their total share ownership during the quarter. Analysts have noted Astera Labs’ strong position in the AI market, with some projecting EPS could exceed $3 next year.