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Celestica stock fell more than 5% on Tuesday, reaching its lowest level since September 21 as AI-related companies broadly declined. Shares traded at $480 in Toronto, about 14.5% below their October peak.
SPCX outpaces CLS in stock performance and earnings estimate revisions, but Celestica offers a cheaper valuation.
Celestica (CLS) reached $347.5 at the closing of the latest trading day, reflecting a -4.05% change compared to its last close.
Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.
CLS is riding AI infrastructure and 800G/1.6T networking demand, but customer concentration and competition pose risks to its growth.
CLS expands its communications portfolio with 1.6T Ethernet, optical technologies and open networking for AI and cloud.
Celestica maintains a growing slate of AI opportunities, benefiting from partnerships with hyperscalers, frontier labs, and chip leaders like AMD and Google. CLS is capitalizing on expanding AI and custom chip opportunities, positioning itself as a key partner across the value chain beyond traditional hyperscaler projects. Despite concerns over hyperscaler CapEx normalization post-2027 and low-margin risks, CLS is projected to exceed $27 billion in FY2027 revenue.
Celestica (CLS) closed the most recent trading day at $382.69, moving 1.2% from the previous trading session.
Celestica enters 2027 with ten 1.6T programs, continued 800G growth, and AMD Helios and OpenAI rack production approaching. Management expects 2027 revenue growth to exceed 2026's 65%, supported by multibillion-dollar AI programs and long-term capacity commitments. My base case assumes $31 billion revenue and $16 adjusted EPS, supporting a $450 target and approximately 24% upside.
Agentic inference is intensifying AI networking demand, expanding Celestica Inc.'s content share across the growing AI infrastructure TAM through scale-out, scale-up, and system-level opportunities. The AMD Helios and OpenAI Jalapeno deal wins validate Celestica's deepening reach into next-generation AI architectures, underscoring an inflection from scale-out towards scale-up connectivity that requires 10x greater interconnect density. The upcoming 1.6T ramp also catalyzes an increasing mix shift for CLS towards higher-value HPS sales, reinforcing incremental operating leverage supportive of further earnings and FCF expansion at scale.
Zacks.com users have recently been watching Celestica (CLS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.