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Astera Labs Appoints Morgan Stanley and JPMorgan as Lead Underwriters for Its Planned IPO Expected in 2024
Santa Clara, California-based semiconductor connectivity solutions firm, Astera Labs Inc has appointed Morgan Stanley (NYSE: MS), and JPMorgan Chase & Co (NYSE: JPM) as the lead underwriters for its highly anticipated initial public offering (IPO). According to people familiar with the matter, the Astera Labs IPO is expected to take place sometime next year as the timing has not yet been finalized. The young tech company has recorded significant growth in the past few years due to the high demand for AI products. Furthermore, the company has received significant funding from veteran tech investors including Intel Corporation (NASDAQ: INTC).
Founded in 2017, Astera Labs made significant headlines late last year when it closed a series D funding round with about $150 million at a valuation of about $3.15 billion. Notably, the company has significantly grown its portfolio in the past few months in preparation for next year’s IPO.
For instance, the company expanded its global presence with a research and development center in Toronto and Vancouver, Canada. The company also expanded its board of directors to include Dr. Alexis Black Bjorlin, the vice president of Infrastructure at Meta, and Michael Hurlston, President and CEO of Synaptics Incorporated.
According to Manuel Alba, the Chairman of the Board at Astera Labs, the company will remain focused on transformative technology including in semiconductors, cloud, and data centers. As a result, the company is continuously hiring for new positions to ensure sustainable future growth prospects.
Astera Labs and Market Outlook before Its IPO
In a bid to unleash the full potential of intelligent data infrastructure at the cloud scale, Astera Labs has put more resources into enhancing its PCle technology to enhance server communication. According to a report conducted by ABI Research, on PCIe technology adoption in AI systems, it is estimated that the industry will grow from $450 million in 2022 to about $2.8 billion by 2030.
Notably, PCIe technology gives data center architects unprecedented agility through forward and backward module interoperability, thus reducing the time-to-value and significantly lowering the deployment risk.
Servers are challenged to process more intricate and diverse types of workloads in #cloud, hybrid-cloud and enterprise #datacenters. Our blog with @pci_sig covers how #PCIe has become the critical #connectivity backbone for servers. Learn more: https://t.co/l0jTZH61d4 #PCIexpress pic.twitter.com/JNlLqwCXtB
— Astera Labs (@AsteraLabs) October 4, 2023
With a well-funded research team, Astera Labs anticipates attracting more investors during its IPO next year. Moreover, the company has convinced existing investors of its future growth prospects and ability to disrupt the AI industry. In the recent past, the company has made several initiatives to enlighten the public on solutions and infrastructures. For instance, Astera Labs attended last month’s Intel Innovation conference to showcase its cloud and data center capabilities.
