Celestica CEO explains the company’s role in the AI ​​boom

Celestica In an interview Tuesday with CNBC’s Jim Cramer, CEO Rob Myonis explained how his company designs and manufactures the infrastructure that enables artificial intelligence.

“If AI is a speeding freight train, then we are laying the tracks in front of the freight train,” Myonis said.

He pushed back against the idea that the AI ​​boom is a bubble, saying the technology has gone from being a “nice to have” to a “must have.”

Celestica released results after the close of trading on Monday, managing to beat expectations and raising its full-year outlook. The stock hit a 52-week high during Tuesday trading, closing up more than 8%. Celestica has risen significantly over the past few months, with the stock currently up 253.68% year-to-date.

Mr. Mionis explained some of Celestica’s business strategy, including how the Canadian company chose to move from the commodity market to design and manufacturing. He told Mr. Kramer that this choice had been “hugely rewarding” for the company.

Celestica’s focus on design and manufacturing allows the company to “consistently execute at scale,” he added.

He detailed Celestica’s data center operations, saying the company makes high-speed networking and storage systems for hyperscalers, digital native companies, and other companies.

Mionis praised the company’s partnership with semiconductor manufacturers. broadcomCelestica says it uses Broadcom silicon in many of its designs.

“What that means for us is when they launch new silicon. So Tomahawk 6 is their 1.6 terabyte of silicon. When they bring it to market, they work with us to develop products that will eventually be delivered to major hyperscalers.”

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Broadcom.