Watch Desk posted an update
Three companies supplying the AI boom, Celestica, Cadence Design Systems and Rambus, beat earnings expectations, Coinpaper reports. Celestica posted quarterly revenue of $5.83 billion, up 83% year on year, but cut its 2026 free-cash-flow forecast from $600 million to $460 million.
Why it mattersThe tension is plain enough: building capacity to meet demand can consume cash before customers pay. Celestica expects $1.5 billion to $2 billion in capital spending next year, Coinpaper reports. Growth is welcome; funding the machinery behind it is the less glamorous part of the story.
Discuss: When AI suppliers are growing fast, should investors focus more on rising sales or on whether that growth is generating cash?
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