Astera Labs' IPO surged 72% on debut, indicating strong interest in AI tech

When the bell rang, Astera Labs was trading at $52.56 per share, up 46%, and it was a public business.

The firm set its IPO pricing Friday night at $36 per share, which is more than its previously stated range. With Astera's launch, TechCrunch is tracking its first material technology offering of the year. The popular social media platform and source of AI data, Reddit, is predicted to price after today's trade close and start its own public narrative tomorrow.

The hardware for connectivity is produced by Astera Labs for cloud computing data centers. Astera has witnessed a surge in revenue recently since AI necessitates the movement of enormous volumes of data into, out of, and around data centers. Revenue increased by 45% to $115.8 million in 2023 from $79.9 million in 2022.

On the first day of trade, shares finished at $62.03, a 72% increase. The company's aggressive entry into the public eye may inspire other private-market tech companies to muster the bravery to list their own shares after a protracted period of low IPO activity, even though its robust early trading will undoubtedly prompt criticism that it was mispriced and that the company left money on the table.

At its current market price, Astera Labs is valued at approximately $8.9 billion, up from its $5.5 billion IPO price. Even though fully diluted valuation estimates are greater, the company's most important achievement was surpassing its final private price during IPO pricing and then outperforming the latter figure right after.