Celestica is a core AI play, this investor says

Velocity Investment Partners fund manager Brianne Gardner says Celestica (Celestica Stock Quote, Chart, News, Analysts, Financials TSX:CLS) remains a holding in the firm’s portfolio after becoming one of the biggest beneficiaries of the AI infrastructure buildout.

Speaking on BNN Bloomberg’s Market Call on May 29, Gardner said Celestica has moved beyond traditional manufacturing as demand for AI and cloud infrastructure continues to accelerate.

“Celestica helps build the hardware behind AI and cloud infrastructure, including network equipment, switches, data center systems really used by these hyperscalers,” Gardner said. “You can see the nice run-up stock has had over the past five years, over 5,000%, and the growth has been massive.”

Gardner noted that Celestica’s revenue rose more than 50% in its most recent quarter as demand for AI infrastructure and high-speed networking continued to grow.

“What makes this story interesting is that they’re no longer just a traditional manufacturing company,” she said. “They’re moving into products with better margins, stronger customer relations, and they also recently won a new packaging optics program with a hyperscaler customer.”

Gardner said that the win reinforces Celestica’s increasing importance in the AI supply chain, though she acknowledged expectations have risen after the stock’s sharp re-rating.

“I still see upside potential, even with this AI spending staying strong, of about 30% from here with a price target of about six twenty-five,” she said. “So a stock we’re gonna continue to hold.”

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