Q: Celestica is down significantly in the last few days since the Digitimes report regarding the fact that Google's tensor processing unit servers may be assembled by another supplier. Please comment. Is this an opportunity to pick up additional shares?
Thanks..Glenn
Thanks..Glenn
5i Research Answer:
The reports so far are unsubstantiated, but we are of the view that if there is a rival to CLS's dominance, it will because of excess demand and not associated with a 'switch' of suppliers. This of course remains to be seen but we would see the dip as more of a buying opportunity than a real concern.