Celestica weakness attributed to report on Google TPU servers

Shares of Celestica (CLS) are down $23.65, or nearly 8%, to $286.25 in early trading in New York following a Digitimes report that Google’s (GOOGL) tensor processing unit servers may be assembled by another supplier. A translation of the Chinese-language report indicates that the assembly of Google’s TPU servers beyond L10 is handled by Google’s own factories and Celestica in Canada, but notes that Google is reportedly expanding its L10-L11 assembly orders for its TPU servers to Taiwanese manufacturers. Inventec declined to comment, only stating that it will significantly increase its AI server production capacity in 2026, DigiTimes added.