Disclaimer: This is not financial or investment advice.

AI infrastructure investment is booming, and stellar earnings from two leading companies confirm this trend.

Teradyne $TER

The company makes testing equipment for semiconductors and robotics.

They just beat Q3 revenue with $769.2 million against the expectations of $743.8 million. It now expects growth to pick up from here to 27%, citing AI-related test demand and its impact across its compute, networking and memory segments. It expects revenue for current quarter of between $920 and $1 billion, ahead of the $815.3 million analysts expected.

Celestica $CLS

The company makes connectivity and cloud solutions. The company boosted its outlook and reported a gain in Q3 revenue and profit driven by growing demand for artificial intelligence hyperscalers. The electronics manufacturing services company now expects Q4 revenue of $3.33 billion to $3.58 billion, with adjusted EPS between $1.65 and $1.81. Analysts were expecting revenue of $3.08 billion and adjusted EPS of $1.51.

CFO Mandeep Chawla on an earnings call credited the rise in Celestica’s outlook to the ramping up of a next-generation program for hyperscaler application in AI and machine learning computing power, which is the hardware resources used to train, run, and scale the software. Celestica is seeing its largest and fastest-growing market presence within AI data centers, where it supports high-performance networking and customer computing platforms.

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Disclaimer: This is not financial or investment advice.

A case for Rubrik

Rubrik, Inc. engages in the provision of cloud data management solutions. Its solutions include backup and recovery, VM backup, Microsoft 365, ransom ware recovery, database backup, cloud solutions, and Polaris sonar. Rubrik products include data protection, data threat analytics, data security posture and cyber recovery.

Q2 revenue grew by more than 51%, driven by a 55% increase in subscription services, which in turn were driven by new, large clients. The number of clients contributing more than $100K to recurring revenue increased by 27% and is expected to grow. The company widened its gross margin by several hundred basis points, narrowing its operating losses despite increased marketing and R&D. The company posted an adjusted loss, as expected, but it was far smaller than forecasted.

Revenue

Earnings

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