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

celestica CEO Rob Mionis explained how his company designs and builds the infrastructure that enables AI in an interview with CNBC’s Jim Cramer on Tuesday.

“If AI is a fast freight train, we are laying the tracks in front of the freight train,” Mionis said.

He disputed the idea that the AI ​​boom was a bubble and said the technology was evolving from a “nice to have” to a “must-have.”

Celestica reported earning Following the close on Monday, we managed to beat estimates and raise our full-year outlook. The stock hit a 52-week high in Tuesday’s session, closing up over 8%. Celestica has had a big run over the last few months, with its shares currently up 253.68% year-to-date.

Mionis described some of Celestica’s business strategies, including how the Canadian company chose to move away from commodity markets into design and manufacturing. He told Cramer that this choice “paid off in spades” for his company.

He added that Celestica’s focus on design and manufacturing allows the company to “operate consistently at scale.”

Elaborating on Celestica’s data center work, he said the company makes high-speed networking and storage for hyperscalers, digital native companies and other enterprise names.

Mionis praised the company’s partnership with the semiconductor manufacturer broadcomHe says Celestica uses Broadcom’s silicon in many of its designs.

“What that means for us is that when they launch a new piece of silicon — so Tomahawk 6 is their 1.6 terabyte silicon — when they bring that to market, they will work with us to develop products, and those products will be among the big hyperscalers.”

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Broadcom.