Core Insights - Celestica has gained significant attention from institutional investors, with $6.32 billion in inflows and $4.28 billion in outflows over the past year, indicating strong interest from smart money [1] - The company has seen a substantial increase in revenue and earnings, with a 28% year-over-year revenue growth to $3.19 billion and a 52% increase in adjusted EPS to $1.58 in Q3 2025 [5] - Celestica is well-positioned in the high-performance technology hardware market, particularly benefiting from the transition to 800G switches and strong demand for AI compute systems [6][7] Financial Performance - Celestica's market capitalization stands at $32 billion, with a current stock price of $280.06 [4] - The company has raised its full-year 2025 revenue guidance from $11.55 billion to $12.2 billion and adjusted EPS outlook from $5.50 to $5.90 [5] - Projected revenue for 2026 is $16 billion, reflecting a 31% year-over-year growth based on 2025 guidance [5] Market Position and Demand - Celestica holds over a 50% market share in the Ethernet switch market, indicating a strong competitive position [6] - The company is expected to benefit from a 1.6T networking upgrade cycle and confirmed demand from hyperscalers for the next 12 to 15 months [7] - Future engagements, including mass production of a custom AI system, could potentially add "multiple billions of dollars" in revenue by 2027 [7] Growth Catalysts - The demand for Celestica's application-specific integrated circuit (ASIC)-based AI compute systems is robust, driven by major hyperscalers [6] - The company is positioned to capitalize on the ongoing shift in technology infrastructure, making it an attractive investment in the AI sector [8]

Core Insights - Jabil, Inc. (JBL) has experienced a stock price increase of 119.6% over the past year, which is lower than the Electronic Manufacturing Services industry's growth of 136.7% but higher than the S&P 500's performance during the same period [1][8] - The company has outperformed Sanmina Corporation (SANM), which gained 80.1%, but underperformed Celestica, Inc. (CLS), which surged 311.4% [2] Group 1: Market Trends and Strategic Initiatives - The AI data center market is projected to grow from $13.62 billion in 2025 to $60.49 billion by 2030, reflecting a compound annual growth rate of 28.3% [4] - Jabil has formed a collaboration with Endeavour Energy LLC to provide sustainable data center infrastructure, aiming to deliver on-demand data center capacity [4][5] - The acquisition of Mikros Technologies enhances Jabil's capabilities in the AI data center market, particularly in advanced cooling solutions necessary for high computing power [6][9] Group 2: Financial Performance and Estimates - Earnings per share (EPS) estimates for 2025 have risen by 4.45% to $9.39, indicating strong investor confidence [8][12] - The company is set to invest $500 million in the Southeast U.S. to expand manufacturing capabilities and develop a skilled workforce for cloud and AI data center solutions [10] - Jabil's price/earnings ratio is currently at 21.00, which is lower than the industry average of 23.59 but above its historical mean of 16.73 [13] Group 3: Competitive Position and Diversification - Jabil's focus on product diversification across multiple sectors, including capital equipment, warehouse automation, and renewable energy, provides resilience against macroeconomic disruptions [11] - The company's integration of AI and machine learning capabilities is enhancing operational efficiency and margins [11] - Jabil's strong portfolio positions it competitively in the AI hardware supply chain, despite increased investments from competitors like Celestica and Sanmina [10][16]