Celestica is Canada’s best AI stock, this investor says

5i Research head of research Chris White says Celestica (Celestica Stock Quote, Chart, News, Analysts, Financials TSX:CLS) is the strongest Canadian AI infrastructure name, helped by its role in building systems for hyperscale data centres.

Speaking on BNN Bloomberg’s Market Call on June 29, White said Celestica manufactures AI systems that can be installed directly into hyperscaler data centres.

“They essentially take the semiconductor chips, the networking equipment, the power systems, and they manufacture all of that hardware together,” White said.

White said Celestica has been winning design deals and should continue to benefit from strong forward growth, despite trading at about 32 times forward earnings.

“I think this is the best Canadian AI infrastructure name out there,” he said. “I think this will do well.”

Celestica shares closed June 29 at US$343.00. The stock was up 123.6% over the previous 12 months. Of the analysts covering the stock, 24 rated it “Buy,” two rated it “Hold” and none rated it “Sell,” with a consensus target of US$450.73.

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