AI infrastructure demand is booming. But who gets to keep the margins?
Bernstein estimates global AI rack demand at around 43 GW, while new U.S. data center capacity expected in 2027 is roughly 26 GW. Different geographic scopes, but the gap highlights why overseas infrastructure expansion matters.
The firm remains positive on AI networking equipment, with Celestica ($CLS) in focus.
Bernstein projects CLS could generate $36 EPS in 2028, with a $520 price target. But investors are watching whether Google’s broader TPU supplier base could pressure Celestica’s market share and margins.
Its October 27 Investor Day is the next catalyst to watch.
My take: AI demand can keep growing, but demand alone doesn’t guarantee every supplier wins. Market share and margins are where the real battle happens.
AI is building the future. Wall Street still wants to know who gets paid.
Bernstein estimates global AI rack demand at around 43 GW, while new U.S. data center capacity expected in 2027 is roughly 26 GW. Different geographic scopes, but the gap highlights why overseas infrastructure expansion matters.
The firm remains positive on AI networking equipment, with Celestica ($CLS) in focus.
Bernstein projects CLS could generate $36 EPS in 2028, with a $520 price target. But investors are watching whether Google’s broader TPU supplier base could pressure Celestica’s market share and margins.
Its October 27 Investor Day is the next catalyst to watch.
My take: AI demand can keep growing, but demand alone doesn’t guarantee every supplier wins. Market share and margins are where the real battle happens.
AI is building the future. Wall Street still wants to know who gets paid.