**Celestica Enhances Growth Outlook Amid AI Partnerships**
Celestica Inc. (NYSE: CLS) reported a 62% increase in revenue year-over-year for Q2, reaching $4.7 billion, while earnings per share rose 83% to $2.54. The company has raised its 2026 revenue guidance from $19 billion to $20.5 billion and increased its non-GAAP earnings per share forecast from $10.15 to $11.30. This growth is attributed to partnerships with major AI chip designers such as Broadcom, Intel, and AMD.
Over the past three months, Celestica’s shares have declined by 12%, but analysts remain optimistic about its growth potential due to robust demand in the AI hardware sector. Broadcom, for instance, reported a 143% year-over-year increase in AI semiconductor revenue last quarter. The company’s valuation currently stands at 36 times earnings, slightly above the Nasdaq-100 index’s multiple of 33, suggesting potential upside for investors as earnings continue to grow.
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