Core Insights - Celestica Inc. (CLS) is recognized as a significant player in the AI infrastructure sector, demonstrating a notable 52-week stock gain of over 100% despite mixed performance in recent months [1] Company Performance - The stock of Celestica has experienced fluctuations, yet the substantial 52-week gain highlights its potential in the market [1] Industry Position - The company is positioned within the tech sector, particularly focusing on AI infrastructure, which is a growing area of interest for investors [1]

Article contentInvestors fled software stocks this week to the tune of hundreds of billions of dollars after artificial intelligence (AI) developer Anthropic released a tool to automate legal work that initially left the developers of legal software “reeling” only to spread to other segments of the sector, David Rosenberg, president of Rosenberg Research & Associates Inc., said in a note. Software stocks are down 18 per cent this year and Rosenberg estimated that the losses in the sector now total more than ...

When Alphabet (NASDAQ:GOOGL) announced 2026 capital expenditure guidance of $175-$185 billion during its Q4 2025 earnings call on February 4, th, it represented a 97% year-over-year increase in spending. ...

At the ground level, Celestica offers a number of high-end platform solutions tailored to meet vital technology needs. The company’s server rack integration services include everything from design to deployment, and are only part of the overall hardware solutions available. Celestica can meet the hardware needs of enterprise-scale AI, cloud, and data center installations, including post-deployment testing, after-market services, and logistics support. The after-market aspect is one of Celestica’s key advant ...

We recently published 10 Stocks Withstanding Market Turbulence. Celestica Inc. (NYSE:CLS) was one of the best performers on Thursday. Celestica jumped by 6.90 percent on Thursday to finish at $294.89 apiece as investors loaded portfolios in semiconductor stocks on strong confidence amid a market bloodbath dampened by Bitcoin’s sharp fall during the day. The rally was further supported by a strong earnings performance last year, with net income soaring by 94.5 percent to $832.5 million from only $428 millio ...

I have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to gravitate to Tech stocksAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, ...

I have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to gravitate to Tech stocksAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, ...

Core Viewpoint - The AI sector remains promising, with significant growth potential and opportunities for investment despite recent volatility in stock prices [7][40][67]. Market Overview - The AI stocks experienced a sell-off similar to previous market declines, with the S&P 500 dropping approximately 15% during a recent period [8]. - The current market is characterized by confusion, with geopolitical events influencing investor behavior and leading to volatility in both tech and safe haven sectors [17][22]. AI Sector Insights - The global AI market is projected to grow from $539 billion in 2026 to over $3 trillion by 2033, driven by investments from major tech companies and increasing demand for data centers [40][42]. - Adoption of AI technologies is expanding across various sectors, including healthcare and manufacturing, indicating a long-term trend rather than a temporary phase [15][20]. Stock Recommendations - The top 10 AI stocks recommended show an average revenue growth rate of 38% and an EPS growth rate of 99%, significantly outperforming the S&P 500 and the Magnificent Seven stocks [66][67]. - Specific stocks highlighted include: - **Lumentum Holdings (LITE)**: Up 402% in the last year, with a long-term growth rate of 61% [70]. - **Micron Technology (MU)**: Up 387% in the last year, with a long-term growth rate of 51% [72]. - **Ciena (CIEN)**: Up 215% in the last year, with a long-term EPS growth CAGR of 44% [74]. - **General Motors (GM)**: Up 76% in the last year, utilizing AI for enhanced vehicle connectivity [79]. - **Taiwan Semiconductor Manufacturing (TSM)**: Up 71% in the last year, with strong growth metrics [80]. - **Credo Technology (CRDO)**: Despite recent declines, it has strong growth potential with a forward EPS growth rate of 248% [97]. - **AppLovin (APP)**: Up almost 1000% within Alpha Picks, with a long-term growth rate of 48% [98]. - **Globus Medical (GMED)**: In the healthcare sector, showing strong growth metrics [100]. Investment Strategy - The strategy emphasizes buying on dips, particularly for stocks with strong fundamentals that have recently experienced price declines [35][106]. - The quant model used for stock selection focuses on multiple factors, including growth, value, and profitability, ensuring a diversified approach to investment [51][60].

Core Insights - Celestica, Inc. (CLS) reported strong fourth-quarter 2025 results with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by significant growth in the Connectivity & Cloud Solutions (CCS) segment [1][9] Financial Performance - Total revenues in the CCS segment increased by 64% year over year to $2.86 billion, with the Enterprise business revenues rising by 33% and the Communications end market achieving 79% growth [2] - Celestica generated $250.6 million in cash from operations, up from $143.4 million in the previous year, and free cash flow increased by 62.7% year over year to $155.9 million, indicating strong capital management [4] - The company's inventory balance rose to $2.19 billion, an increase of $427 million compared to the prior year, while cash cycle days improved by 8 days to 61 days, reflecting efficient inventory management [5] Strategic Partnerships and Market Position - Celestica is collaborating closely with Google on complex data center hardware, serving as the preferred manufacturing partner for Google's Tensor Processing Unit (TPU), and is expanding its capacity to support the adoption of these systems [3] - The company has outperformed its peers, with its stock increasing by 125.4% over the past year, compared to 74.4% growth in the Electronics - Manufacturing Services industry [10][11] Challenges and Risks - Growth is heavily reliant on AI data center spending by hyperscalers, with significant customer concentration risk as the top three customers account for approximately 63% of total revenues [6] - The Advanced Technology Solutions segment experienced a 1% decline in revenues year over year, and the company faces challenges from foreign exchange fluctuations and geopolitical volatility [7][6] Valuation Metrics - Celestica's shares are currently trading at a premium with a price/earnings ratio of 34.42 for forward 12-month earnings, compared to 23.59 for the industry [13]

Explore Alpha Picks Today! Follow Steven Cress on Seeking Alpha! Check Out Pro Quant Portfolio Now! Read the 10 Stocks Article Here! This video's transcript was generated by a third party. It is not curated or reviewed and is provided for convenience and information purposes only. The accuracy and completeness of the transcript are not guaranteed. Daniel Snyder: Hello, everyone. I'm Daniel Snyder from Seeking Alpha. Thank you so much for taking the time to hang out with us for this hour. Today, we have a s ...