Gotrade News - OpenAI plans to buy AI chips from Google parent Alphabet (GOOGL), Reuters reported on Tuesday, October 27, citing The Information, while Celestica (CLS) shares jumped on a raised outlook and a $40 billion 2027 revenue target, and ASMPT posted record third-quarter bookings of $1.13 billion on AI demand.
The three reports arrive as Amazon, Microsoft and Alphabet plan to spend as much as $600 billion combined on AI infrastructure this year, as reported by Reuters.
GOOGL and CLS Market Data
| Ticker | Close | Daily change | 52-week range |
|---|
| GOOGL | $320.58 | +1.19% | $266.50 to $408.61 |
| CLS | $276.54 | +12.12% | $244.51 to $474.03 |
Regular-session close on October 27, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. 52-week range: Yahoo Finance daily highs and lows since October 28, 2025.
Alphabet (GOOGL): OpenAI Reportedly Plans to Buy Google TPUs
According to Reuters, The Information reported that OpenAI plans to buy Google's Tensor Processing Units (TPUs), citing a person familiar with the matter, and did not disclose financial terms. Google did not immediately comment, and OpenAI declined to comment.
A purchase would deepen ties between two companies that compete in AI products and search but have increasingly struck commercial deals, Reuters wrote. Last week, OpenAI said it would make its frontier AI models available through Google Cloud.
OpenAI is already a major buyer of Nvidia GPUs, and Reuters reported in June 2025 that it had begun renting Google's AI chips. In June this year, OpenAI unveiled its first custom AI chip, designed with Broadcom, and said it planned to deploy it by the end of the year.
Google began selling TPUs directly to some customers this year, and deals with customers including rival Anthropic have fueled demand for the chips, per Reuters. Alphabet expects to recognize a small share of TPU sales revenue by the end of this year, with most of it expected in 2027, according to CFO Anat Ashkenazi. Alphabet will report its quarterly results later on Wednesday.
ASMPT: Record $1.13 Billion in Q3 Bookings on AI Demand
Hong Kong-listed ASMPT, whose businesses cover semiconductor (SEMI) and surface mount technology (SMT) equipment, reported record third-quarter bookings of $1.13 billion, up 24.7% from the second quarter and 137.9% from a year earlier, according to an Investing.com earnings call transcript. Revenue rose 48.7% year over year to $669.2 million, and the book-to-bill ratio was 1.69.
That order growth ran well ahead of the outlook in ASMPT's 2026 interim results release in July, when the group said it expected third-quarter bookings to rise by a high single-digit percentage sequentially, mainly driven by thermal compression bonding (TCB) and photonics.
Both segments posted triple-digit booking growth from a year earlier, according to the Investing.com transcript:
| ASMPT Q3 2026 (US$) | Bookings | Bookings YoY | Revenue | Revenue YoY |
|---|
| SEMI | $563.3 million | +156.3% | $374.2 million | +68.0% |
| SMT | $564.7 million | +122.1% | $295.0 million | +29.8% |
| Group | $1.13 billion | +137.9% | $669.2 million | +48.7% |
ASMPT's chief executive said AI data centers drove record orders in TCB logic and that "AI demand is expected to drive sustained revenue growth in 2027," per the transcript. The group guided fourth-quarter revenue to $670 million to $730 million, with SMT expected to grow by double digits while SEMI revenue stays flat because of longer advanced packaging lead times, which management put at six to nine months.
Celestica (CLS): $40 Billion 2027 Revenue Target After 83% Q3 Growth
Celestica shares jumped more than 12% on Tuesday after the company raised its full-year targets, according to The Motley Fool, which said investors were "perhaps even more pleased" with the 2027 outlook.
In its third-quarter earnings report, Celestica said revenue rose 83% to $5.83 billion from $3.19 billion a year earlier and adjusted EPS climbed 109% to $3.30, per the company's release. Revenue in its Connectivity and Cloud Solutions (CCS) segment rose 102% to $4.87 billion, Advanced Technology Solutions (ATS) revenue rose 23% to $0.96 billion, and the adjusted operating margin improved to 8.5% from 7.6%.
The Motley Fool said compute and storage-related sales grew 242%, driven by AI infrastructure demand from large-scale cloud customers. Chair and CEO Rob Mionis framed the results around that demand:
"Celestica is well-positioned to continue to support leading hyperscalers and frontier AI labs." (Rob Mionis, Celestica Chair and CEO)
The company's release set out the new outlook against its prior targets:
| Celestica outlook | New | Prior |
|---|
| 2026 revenue | $21.0 billion | $20.5 billion |
| 2026 adjusted EPS | $11.55 | $11.30 |
| 2026 free cash flow | $460 million | $600 million |
| 2027 revenue | $40.0 billion | Not stated |
| 2027 adjusted EPS | $21.50 | Not stated |
| 2027 adjusted operating margin | 9.0% | Not stated |
Celestica lowered its 2026 free cash flow outlook mainly for working capital investments to support 2027 growth, and it expects 2027 capital expenditures of $1.5 billion to $2.0 billion, according to the release. For the fourth quarter, it guided revenue of $6.275 billion to $6.575 billion and adjusted EPS of $3.37 to $3.57.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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