Q: Most AI related stocks including Celestica have come under pressure, this week, presumably, due to concerns emanated from recent trend of capex financing through debt issuance by some hyperscalers.
Michael Burry's short report has also been widely circulating, accusing Maga Tech companies, understating depreciation related to expensive chips ( he also promised more details on Nov 25 ), thus inflating profit margins.
What is your view on these concerns ?
Where do you see a floor for CLS ?
Thank You
Michael Burry's short report has also been widely circulating, accusing Maga Tech companies, understating depreciation related to expensive chips ( he also promised more details on Nov 25 ), thus inflating profit margins.
What is your view on these concerns ?
Where do you see a floor for CLS ?
Thank You
5i Research Answer:
The concerns around depreciation are warranted and ironically, this recent softness in AI names...