Celestica shifts from contract manufacturing to AI infrastructure co-designer amid strong AI data center demand.

Celestica has evolved from a traditional contract manufacturer to a key co-designer and supplier in AI infrastructure, benefiting from rising demand in AI data centers. The company leads in AI cluster switches and is capitalizing on hyperscalers adopting advanced 800G and 1.6T Ethernet technologies. Its Q1 2026 results show a 53% revenue increase and a 68% growth in adjusted EPS guidance for the year, driven by expanding margins and strong free cash flow. Risks include customer concentration, scaling execution challenges, and a premium valuation dependent on sustained AI infrastructure growth.