Astera Labs had a strong debut as a public company, with shares trading at $52.56 per share, up 46% from its IPO price of $36 per share. This marks the first major technology offering that TechCrunch is tracking this year. Reddit is also expected to go public soon, with its own debut anticipated tomorrow.
Since its debut, Astera’s shares have continued to climb, reaching $55.73, a gain of around 54%. Despite potential criticisms of mispricing, the company’s successful IPO may encourage other tech companies to consider going public.
Astera Labs’ IPO initially valued the company at around $5.5 billion, but its current trading price brings its market cap to around $8.9 billion. This strong performance underscores the market demand for AI shares.
A quiet winner
Astera Labs’ IPO has been quieter than Reddit’s upcoming offering, but it highlights the market demand for AI companies. With a focus on AI-led datacenter buildout, Astera Labs is well-positioned for future growth. Its recent acceleration in growth and shift to GAAP profitability point to its promising future.
Astera’s debut also provides insight into how venture-backed IPOs may perform this year, setting the stage for companies like Databricks, Stripe, and Plaid. Astera’s strong performance may also pave the way for Reddit’s listing.
Reddit’s up next
The success of Astera’s IPO could bode well for AI hardware companies and may pave the way for Reddit’s own public offering. Astera’s strong performance could also impact investor activity and encourage more startups to consider going public.
