Core Insights - Celestica, Inc. and Corning Incorporated are significant players in the global tech hardware ecosystem, with Corning focusing on advanced glass technologies and optical connectivity, while Celestica provides electronics manufacturing services and supply chain solutions [1][7] Market Overview - The global AI infrastructure market was valued at $35.42 billion in 2023 and is projected to reach $223.45 billion by 2030, growing at a compound annual growth rate of 30.4%, driven by the expansion of AI workloads [2] Celestica's Performance - Celestica's Connectivity & Cloud Solutions segment saw a 43% year-over-year revenue increase, driven by demand for advanced networking products like 400G and 800G switches, as well as enterprise-level data communications infrastructure [3][5] - The company is expanding its partnerships and launched the SC6110 storage controller, which is designed for AI infrastructure and high-performance computing [4] - Celestica's recent introduction of 1.6TbE data center switches indicates a focus on supporting high-bandwidth AI applications, which is expected to drive long-term growth [5] Corning's Performance - Corning is experiencing growth in its Optical Communications and Specialty Materials segments, benefiting from the increasing use of mobile and IoT devices and the demand for robust network architecture in AI data centers [7][8] - The company is innovating with advanced fiber and cable systems that enhance connectivity capacity in data centers without significant infrastructure changes [9] - Corning's consumer electronics segment is also a major growth driver, with collaborations with leading manufacturers and expansion into the automotive market [10] Competitive Landscape - Both companies face competition, with Corning competing against Amphenol Corporation in the communication components market, but its innovative product launches are expected to provide a competitive edge [12] - Celestica's revenue is significantly dependent on a few major customers, with 59% of its total revenues coming from three customers, posing a concentration risk [6][21] Financial Estimates - The Zacks Consensus Estimate for Celestica's 2025 sales and EPS indicates year-over-year growth of 26.31% and 52.06%, respectively, while Corning's sales are expected to grow by 12.99% with an EPS projected at $2.52 [13][15] - Over the past year, Celestica's stock has gained 205.3%, compared to Corning's 85.3% growth, but Corning appears more attractive from a valuation perspective with a lower price/earnings ratio [16] Investment Outlook - Celestica holds a Zacks Rank 3 (Hold), while Corning has a Zacks Rank 2 (Buy), indicating a more favorable investment outlook for Corning [17][22] - Both companies are expected to benefit from margin expansion in the AI infrastructure domain, but Corning's broader market exposure reduces its risk compared to Celestica's reliance on AI infrastructure investments [18][21][22]

Core Insights - Celestica Inc. has launched two new data center switches, the DS6000 and DS6001, which double the capacity of its existing 800G solutions to meet the demands of AI networking [1][7] - The new switches are based on Broadcom's Tomahawk 6 Ethernet switch chip and are designed for high bandwidth and low latency, catering to modern AI and machine learning workloads [1][2] Product Launch and Features - The DS6000 is a 64-port switch for traditional air-cooled data centers, while the DS6001 is designed for hybrid cooling environments, utilizing both air and liquid cooling [2] - Both switches support an open-source Network Operating System, enabling versatile deployment across various use cases from data centers to edge computing [2] Market Position and Growth Drivers - Celestica is benefiting from the generative AI boom, with strong demand for AI/ML and networking products from hyperscale customers [3][4] - The company has a diverse product portfolio essential for AI applications, which has contributed to healthy revenue growth [3][4] Strategic Focus and Innovation - The increasing demand for AI-based applications is driving the need for Celestica's enterprise-level data communications and infrastructure products [4][6] - The company is focusing on product diversification and expanding its presence in high-value markets to capitalize on the growing AI workload demands [6][8] Financial Performance - Celestica's stock has increased by 285.9% over the past year, significantly outperforming the industry average of 30.7% and competitors like Flex Ltd. and Jabil Inc. [9] - Earnings estimates for 2025 and 2026 have risen by 25.3% to $5.55 and 17.1% to $6.78, respectively, indicating optimism about the company's growth potential [11] Research and Development - The company has strong research and development capabilities, allowing it to produce complex technology infrastructure products for various industries, enhancing business resilience [8][12] - As production volumes scale up and costs decrease, the new data center switches are expected to see increased adoption, further fueling growth [12]

Core Insights - Celestica Inc. has launched two new 1.6TbE data center switches, the DS6000 and DS6001, aimed at high-bandwidth AI/ML applications, contributing to the OCP Community and listing them on the OCP Marketplace with OCP Inspired™ recognition [1][2][3] Product Specifications - The DS6000 is a 3RU, 64-port switch designed for traditional air-cooled data centers, while the DS6001 is a 2U, 64-port hybrid-cooled switch optimized for the 21-inch OCP ORv3 rack [2][4] - Both switches utilize the Broadcom Tomahawk 6 chipset, providing a total switching capacity of up to 102.4Tbps, effectively doubling the capacity compared to Celestica's existing 800G solutions [2][8] - The DS6000 and DS6001 include advanced AI routing features and interconnect options tailored for AI clusters [2][3] Market Position and Recognition - Celestica has been recognized as a leader in high-speed and AI networking, having received the 2024 Dell'Oro Market Share Leader Awards for both Ethernet Switch – AI Networks and High-Speed Networks (> 800 G) [8][9] - The introduction of the DS6000 and DS6001 switches reinforces Celestica's commitment to addressing the future needs of AI networking and its understanding of enterprise customer requirements for reliability and performance [9][10] Industry Collaboration - The new switches will be showcased at the OCP Global Summit 2025, highlighting Celestica's role in the open networking ecosystem [6][7] - The collaboration with Broadcom on the Tomahawk 6 chipset emphasizes the innovation in delivering solutions optimized for modern AI workloads [7][8] Customer Benefits - The DS6000 and DS6001 switches offer significant advantages, including high performance, energy efficiency, and flexibility in port speeds ranging from 50GbE to 800GbE [8][9] - Both switches support an open-source Network Operating System (NOS) approach, enhancing deployment versatility across various use cases [5][6]