(Reuters) -Chipmaker Astera Labs revealed its loss narrowed in 2023 in its filing on Wednesday to go public in the United States, at a time when the markets have strongly rallied behind companies powering the recent boom in artificial intelligence.
The U.S. IPO market is expected to rebound this year after a two-year lull fueled by the Federal Reserve’s interest rate hikes and geopolitical uncertainty, amid growing expectations of a soft landing.
Social media firm Reddit, cloud-security company Rubrik and software firm ServiceTitan are also expected to go public this year.
Astera and its existing investors, that include private equity firm Sutter Hill Ventures and Fidelity Management and Research, will be selling shares in the offering.
The demand for semiconductor chips used in AI has surged given the recent generative AI advances following the launch of OpenAI’s ChatGPT in late 2022.
Astera reported a net loss of $26.3 million in 2023, compared with a loss of $58.3 million a year earlier. The company’s annual revenue jumped 44.9% to $115.8 million.
The company, valued at more than $3 billion following a late-stage funding round in 2022, provides semiconductor-based connectivity solutions for cloud and AI infrastructure.
Astera collaborates with data center infrastructure suppliers such as Nvidia, Advanced Micro Devices and Intel among others.
Santa Clara, California-based Astera will list its shares on the Nasdaq Global Select Market.
Morgan Stanley and J.P. Morgan Securities are the lead underwriters for the offering.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shounak Dasgupta)
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