ASTERA LABS, INC.

Red flags

• Manufacturing is concentrated in East Asia: the company identifies TSMC as the foundry used by its primary manufacturer and warns that a Taiwan disruption could cause significant production or shipment delays with no assurance of alternate capacity on favorable terms.
• The company states that a substantial portion of revenue is driven by a limited number of end customers, but the supplied excerpts do not quantify the concentration; loss or reduced demand from one or a few customers could materially affect results.
• Purchase commitments totaled $74.9 million at December 31, 2025, including $29.6 million due in 2026 and $30.3 million in 2027, while demand and product cycles remain difficult to forecast.
• Amazon NV Investment Holdings LLC holds warrants for up to 2.316 million shares at a $20.34 exercise price; 1.166 million shares were vested and exercisable at year-end, creating potential dilution and indicating a strategically important customer relationship.
• The company previously reported two material weaknesses in internal control over financial reporting as of 2024. Management says they were remediated in 2025 and controls were effective at year-end, but the remediation remains a governance execution item to monitor.