Core Insights - Celestica reported Q2 2025 earnings with GAAP revenue of $2.89 billion, surpassing analyst expectations of $2.68 billion, and adjusted EPS (non-GAAP) of $1.39, exceeding the $1.24 estimate, reflecting year-over-year growth of 21% in revenue and 54% in adjusted EPS [1][5][2] Financial Performance - Revenue for Q2 2025 was $2.89 billion, a 21% increase from $2.39 billion in Q2 2024 [2] - Adjusted EPS (non-GAAP) reached $1.39, up from $0.90 in the same quarter last year, marking a 54% increase [2] - Operating margin (GAAP) improved to 9.4%, up from 5.6% year-over-year, while adjusted operating margin (non-GAAP) was 7.4%, compared to 6.3% in Q2 2024 [2] - Free cash flow (non-GAAP) was $119.9 million, an 82.8% increase from $65.6 million in Q2 2024 [2][8] Segment Performance - The Connectivity & Cloud Solutions (CCS) segment generated $2.07 billion in revenue, a 28% increase, with Hardware Platform Solutions (HPS) revenue reaching approximately $1.2 billion, up 82% year-over-year [6] - Advanced Technology Solutions (ATS) reported revenue of $820 million, a 7% increase, with segment margin improving to 5.3% from 4.6% in Q2 2024 [7] Strategic Focus - Celestica is focusing on high-value programs, including data center hardware and next-generation networking equipment, emphasizing technological innovation and strong supply chain management [4][3] - The company is diversifying its customer base to mitigate risks associated with customer concentration, where the top ten customers accounted for 73% of revenue in 2024 [11] Future Outlook - Full-year 2025 guidance was raised to revenue of $11.55 billion and adjusted EPS (non-GAAP) of $5.50, with an expected adjusted operating margin of 7.4% [13] - For Q3 2025, projected revenue ranges from $2.875 to $3.125 billion, with adjusted EPS (non-GAAP) between $1.37 and $1.53 [13]

Core Viewpoint - NVIDIA and Qualcomm are both significant players in the chipmaking industry, showing signs of stabilization after recent declines, with potential for a shift in momentum [1] NVIDIA - NVIDIA shares are currently trading at $109, down nearly 30% from its all-time high in January, but signs indicate that the worst may be over, forming a double bottom pattern suggesting a bullish reversal [2] - The company reported record revenue with nearly 80% year-over-year growth in its latest earnings report, and forward guidance exceeded expectations, indicating strong demand for AI chips and data center hardware [4] - Despite the positive outlook, NVIDIA's shares have struggled to recover, yet analysts remain bullish, with Cantor Fitzgerald setting a price target of $220, indicating a potential 100% upside from current levels [5] - The stock has a high price-to-earnings (P/E) ratio of 38, which may deter value-focused investors [6] Qualcomm - Qualcomm shares are down over 30% from their high last June but have shown resilience, holding firm at a multi-year support line around $150, which could lead to stronger upward movements [7] - The last earnings report exceeded expectations and included a dividend increase, signaling confidence in future growth, although recent analyst upgrades have been limited [8] - Qualcomm's P/E ratio is significantly lower at 15.53, making it appear undervalued compared to NVIDIA and other peers, which may attract value investors [9] Investment Considerations - Both NVIDIA and Qualcomm present strong cases for investment heading into Q2, with NVIDIA offering growth potential and analyst attention, while Qualcomm provides a more grounded opportunity with better valuation and fundamentals [10] - Aggressive growth investors may prefer NVIDIA if it can maintain its current price levels, while those seeking value and lower risk may find Qualcomm to be the better option [11]