The Toronto-based AI hardware company reported first-quarter adjusted earnings per share of US$2.16, up 80 per cent from the same period last year, on revenue of US$4.05 billion, a nearly 53 per cent year-over-year jump. But shares were down about 16 per cent amid jitters across the artificial intelligence market. (The Logic) 

Talking point: Investors were skittish about any signs of weakness in AI stocks on Tuesday, selling off shares of Nvidia and Broadcom amid concerns that OpenAI may have overestimated its revenue and user targets while spending heavily on data centres. Though Celestica’s first-quarter revenue was around the middle of the range it had previously forecast, it raised its expectations for the remainder of the year. On an earnings call, chief financial officer Mandeep Chawla and CEO ​​Rob Mionis said that Celestica has long-term demand from customers like hyperscaler data centres, leading it to raise research and development spending “materially” this quarter, and maintain or increase its capital expenditures next year, despite supply chain constraints for some components.

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