Group 1 - The article emphasizes the importance of delivering alpha-generating investment ideas through a structured and evidence-based approach [1] - The investment strategy involves a generalist approach, analyzing and investing in various sectors with perceived alpha potential compared to the S&P 500 [1] - The typical holding period for investments ranges from a few quarters to multiple years, indicating a long-term investment perspective [1] Group 2 - The author has a beneficial long position in CLS shares, indicating confidence in the stock's performance [2] - The article expresses the author's personal opinions and is not influenced by any compensation from companies mentioned [2] - There is no business relationship with any company whose stock is discussed, ensuring an independent viewpoint [2]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of $133.02 based on a 20X PE for 2026 [4]. Core Views - The company is a leading manufacturer of ASIC servers and Ethernet switches, benefiting from the growth in AI inference demand, particularly from major cloud service providers in North America [2][3]. - The company is expected to recover from a short-term decline in server revenue due to Google's TPU product transition, with anticipated growth resuming in the second half of 2025 [2]. - The company is actively expanding its customer base for ASIC servers, having become a supplier for Meta and secured a project with a leading commercial AI company [2][3]. Summary by Sections 1. Deep Layout in ASIC Servers and Ethernet Switches - The importance of inference computing power is increasing, and the ASIC industry chain is expected to benefit from this trend [14]. - The company is positioned to benefit from the volume growth of ASIC servers and the expansion of its customer base, particularly with Google and Meta [27][31]. - The Ethernet switch business is poised to grow due to the trend of AI Ethernet networking, with increased demand for high-speed switches [32]. 2. Transition from EMS to ODM - The company is shifting from an EMS model to an ODM model, which is expected to enhance customer binding and improve profitability [47]. - The revenue from the hardware platform solutions (ODM) is projected to grow significantly, contributing to overall revenue growth [50][52]. - The company's gross margin and operating profit margin have been steadily increasing due to the growth of its ODM business [52]. 3. ASIC Industry and Company Alpha - The company is well-positioned in the ASIC server and Ethernet ODM switch market, benefiting from industry trends and new customer acquisitions [3][4]. - The company’s net profit is forecasted to grow significantly over the next few years, with expected profits of $593 million, $765 million, and $871 million for 2025, 2026, and 2027 respectively [4][8]. - The company is expected to gain market share as it expands its customer base and increases the complexity of its products [31]. 4. Profit Forecast and Investment Recommendations - The company’s revenue is projected to grow from $7.96 billion in 2023 to $15.89 billion in 2027, with a compound annual growth rate (CAGR) of approximately 14.1% [8]. - The EBITDA is expected to increase from $467 million in 2023 to $1.296 billion in 2027, reflecting strong operational performance [8].

Group 1 - Celestica Inc. is a Toronto-based electronics manufacturer that has positioned itself as a significant player in current technology and industrial trends [1] - The company is recognized as an "AWS Certified AI Practitioner Early Adopter," indicating its involvement in advanced AI technologies [1] - Celestica's expertise includes the buildout, deployment, and maintenance of AI tools and applications, showcasing its deep knowledge in generative AI systems [1] Group 2 - The article highlights the importance of machine learning algorithms, model training, and deployment in Celestica's operations [1] - The company is actively pursuing advanced AWS machine learning certifications to enhance its expertise in AI and machine learning [1] - Celestica's strategic positioning in the technology sector suggests potential growth opportunities as it aligns with industry trends [1]

Group 1 - The stock of Celestica (CLS) has decreased by approximately 9%, despite the strengthening of its fundamentals [1] - The current earnings season for big tech companies is ongoing, which may impact market sentiment towards Celestica [1] Group 2 - The article reflects a bullish thesis on Celestica, indicating a potential misalignment between stock performance and company fundamentals [1]

Core Insights - Pythia Research specializes in identifying multi-bagger stocks, particularly within the technology sector, utilizing a blend of financial analysis, behavioral finance, psychology, social sciences, and alternative metrics to evaluate companies with high conviction and asymmetric risk-reward potential [1] Group 1: Investment Strategy - The company employs a multidisciplinary strategy to uncover breakout opportunities before they gain mainstream attention, focusing on market sentiment and emerging trends [1] - Pythia Research emphasizes the importance of understanding investor behavior, including biases such as herd mentality and recency bias, which can create persistent inefficiencies in the market [1] - The firm analyzes psychological noise rather than avoiding it, assessing whether market volatility is driven by emotion or fundamentals [1] Group 2: Opportunity Identification - The research process includes identifying disconnects where belief lags behind reality, particularly in companies that are redefining their categories or have unconventional growth paths [1] - Key signals for potential exponential growth include sudden shifts in narrative, early social traction, founder-driven vision, and underappreciated momentum in user adoption [1] - Pythia Research focuses on conviction plays with a favorable risk/reward profile, aiming for limited downside and explosive upside [1]

Group 1 - The core viewpoint is that Celestica's (CLS) strong Q4 2024 results led to a slight downgrade in rating from Strong Buy to Buy due to rapid price increase and anticipated negative seasonality [1] - Bram de Haas, with 15 years of investing experience and over 5 years managing a Euro hedge fund, is highlighted for his risk management skills and ability to identify lucrative investments [1]

Group 1 - Celestica is positioned as a key player in the AI and cloud infrastructure sectors, benefiting from the increasing demand from hyperscalers [1] - The company serves as a profit-leveraged enabler for backbone systems, indicating its critical role in supporting the growth of these technologies [1] Group 2 - The investment strategy of the analyst focuses on long-term fundamentals and valuation discipline, particularly in technology, semiconductors, AI, and energy sectors [1] - The analyst manages a long-only, unleveraged portfolio aimed at capital preservation and capturing asymmetric upside during market dislocations [1] - The Nasdaq High-Alpha Black Swan Portfolio is highlighted as a private strategy designed for resilience and long-term outperformance [1]

Celestica (CLS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power of ...

Celestica Inc. (CLS) has gained 98.8% over the past year compared with the industry’s growth of 36.4%. It has also outperformed peers like Flex Ltd. (FLEX) and Jabil Inc. (JBL) . Flex has gained 26.7% and Jabil is up 25.9% over this period.  Celestica boasts a diverse portfolio of products that are integral to AI (artificial intelligence) applications. With more than 25 years of experience in manufacturing backed by a simplified and optimized global network, it is committed to delivering next-generation, cl ...

Shares of Celestica (CLS) have gained 28.9% over the past four weeks to close the last trading session at $89.21, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $120 indicates a potential upside of 34.5%.The average comprises 10 short-term price targets ranging from a low of $95 to a high of $150, with a standard deviation of $13.85. While the lowest estimate indicates an incre ...