Astera Labs Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : So Nick, well, it's been a little more than a year since you guys went public, very successful IPO. Maybe we can start with when you went public, I

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : That's great. So your largest business, the retimers, the chip that sits between CPU and GPU and sometimes between CPU and storage, et cetera. There were some concerns, I guess, a lot of concerns as the market moved from Hopper generation to Blackwell, and that still continues to grow to this day. I think last quarter, it was up. For this year looks like it's going to be up like 60% to 70%. And your expectation is for that business to continue to grow into next year.

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : That's great. I think this market took off with Gen AI, the Hopper generation. And then obviously, that attracted some big competitors, right? I think Broadcom announced some products and Marvell announced some products. It looks like you have that visibility into next year in terms of your design win momentum. Also you're talking about ASP premium going forward?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Got it. So should we kind of think of retimer growth going forward kind of primarily associated with the ASIC side of the things? Or do you think there is actually more growth left in the GPU market as well?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Got it. And then in terms of your visibility, I think the systems are designed well in advance, right? Like, I don't know, 18- to 24 months. Is that the sort of visibility that you have in terms of design win momentum? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2025 / 3:00PM, ALAB.OQ - Astera Labs Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Okay. Great. Just switching gears to the PCIe switch side. You have been shipping the Scorpio P for a scale-out. I think that seems to be ramping quite well. So let's talk about that. How do you see the opportunity there? How big is the SAM? And how many designs do you have? And how should we think about growth as we go into next year?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Got it. Then Nick, one of the questions that we always get is that PCI is not a new market, right? There's a lot of players in this market. And what is that you bring to the table that gives you guys this competitive advantage especially on the retimer side? How do you sustain that on also and you're making progress on the switch side? What is that? What are the --

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Got it. Then switching gears to Scorpio X, the Switch product for scale up. Obviously, you've been pretty bullish about the opportunity. It's a large market, but also there is a healthy skepticism about the longer-term sustainability. But it hasn't even started to ramp it. Let's start toward the ramp and how do you see into 2026 in terms of design wins and the momentum?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Yes. We'll get to UALink in a bit. Just want to understand, as you go from retimers to Scorpio P and then Scorpio X. Just kind of talk to us about your content per XPU because I think that's a pretty significant increase that you're seeing.

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Okay. Got it. And obviously, you guys made a comment that Scorpio could be biggest product sometime next year. Retimer is obviously much bigger now. So that kind of, I guess, tells us how confident you are about Scorpio, right?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Got it. And then UALink, that's where there's a lot of debate about. So as we go from Scorpio X, which is PCI Express-based UALink, I would imagine that there is additional content opportunity, right? So where are we in that in terms of the standards? And actually, maybe you can talk about what does UALink bring to the table that PCI doesn't have today? And what do you -- how do you see the timeline of that ramp? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2025 / 3:00PM, ALAB.OQ - Astera Labs Inc at RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : I guess the debate is about UALink versus -- UALink is somewhat new, whereas Ethernet has been around forever. So Broadcom is pushing Ethernet, and it looks like they got pretty good industry-wide support, just like UALink does. So I guess, how can investors get conviction that UALink opportunity is going to be as big as you think longer term, given the contribution from Ethernet?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Yes, makes sense. We're not going to know for a while, right? I mean, by the time UALink is shipping and by the time Ethernet is shipping, it's probably '27, '28. But let me ask you, I mean, is there anything preventing you from, let's say, hypothetically, Ethernet is the way to go. Is there anything preventing you from entering that the Ethernet market? I mean you have the skill set, right, today?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Yes, makes sense. I want to see if there are any questions from the audience? Unidentified Participant So one of the things I kind of think I learned here was the AI at the edge seems to be something that one can discern from vague press releases by some of the large hyperscalers who have consumer end markets as well is kind of probably in the next 18 months to 2 years. All of it is going to be CPU. The thing I think -- it was kind of new to me is that the CPU at the edge probably hands off to a CPU into the data center. And there's really little architecturally, it's better to speak CPU to CPU on many of these devices rather than handoff to a GPU or something else? Am I underestimating Leo and CXL opportunity? Could this be a significantly larger opportunity as AI pushes to the edge and it's more of a CPU to CPU type of market?

Question: Srini Pajjuri - RBC Capital Markets Inc - Analyst : Great. That's all the time we have. Thanks, everyone, for joining.