Celestica has been upgraded to Strong Buy due to rising demand driven by AI and new growth catalysts from partnerships with major hyperscalers and chip makers. Alphabet's $80 billion capital raise could create a $10–16 billion incremental networking opportunity for Celestica, supporting a target of about 70% revenue growth in its CCS segment by 2026. The company benefits from structural shifts toward next-generation switches and expanding markets, especially with Broadcom's strong AI networking performance. Trading at 2.6 times forward revenues, Celestica shows over 36% upside potential, with a recommended underweight 2% portfolio position while monitoring AI infrastructure demand and partner execution.
Celestica received a Buy rating due to its strong revenue growth of 53% year-over-year and 80% growth in diluted EPS, driven by demand in AI and data center markets. Despite a high forward P/E ratio of 37x, the stock trades at a discount on PEG and s...
Despite inflation pressures from rising oil prices, the S&P 500 continues its bullish momentum, largely driven by strong performance in AI and growth sectors. The author remains optimistic about 2026, favoring investments in AI hardware, semiconducto...
