The relentless spending commitments from Microsoft (MSFT) and Meta Platforms (META) continued to create a shortage for AI hardware. Add Anthropic to the list of companies announcing spending commitments.
Anthropic will spend $200 billion on Google’s (GOOG) cloud and chips. According to The Information, spending over the next five years will be for cloud infrastructure and chips. It represents over 40% of Google’s reported cloud revenue backlog. Ahead of the news, GOOG stock traded at $384.31, a new all-time high on Tuesday.
Downstream infrastructure stocks are pulling back slightly. Lumentum (LITE) initially fell in after-hours trading after it posted Q3 results. Non-GAAP EPS was $2.37 on revenue of $808.4 million (+90.1% Y/Y). In Q4, the firm is forecasting net revenue of $960 million to $1.01 billion.
Fabrinet (FN) also pulled back when it posted quarterly results. In Q3, revenue of $1.21 billion is up by 38.8% Y/Y. Firms face supply constraints, which limit their revenue growth.
Teradyne backed off from its all-time high when it posted an 86.6% Y/Y increase in revenue, to $1.28 billion. The firm issued strong guidance.
Celestica (CLS) initially fell to around $376 before rebounding back to around $418. On April 27, it posted Q1 non-GAAP EPS of $2.16. Revenue jumped by 52.8% Y/Y to $4.05 billion. For 2026, Celestica hiked its revenue target to $19 billion, up from $17.0 billion.
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