Celestica, Inc. (CLS) has seen a stock increase of 20.1% over the past six months, compared to a 26.7% growth in the Electronics – Manufacturing Services industry. Despite this, the company has underperformed peers such as Jabil, Inc. (JBL) and Sanmina Corporation (SANM), which grew by 33.4% and 27.3% respectively. Celestica is experiencing robust demand for next-generation Ethernet switches primarily driven by hyperscalers and is preparing for the commercial launch of 1.6-terabit switch programs in late 2026.
Celestica’s AI compute business is accelerating due to increasing investments in AI infrastructure, with management anticipating this growth to persist into 2027. The company is also strategically expanding its manufacturing capacity across North America and Asia to support rising demand and enhance supply chain reliability. Furthermore, Celestica is collaborating with industry leaders like Advanced Micro Devices (AMD) and OpenAI to develop advanced AI solutions, with initial deliveries expected in 2026.
Analyst earnings estimates for Celestica have risen significantly over the last two months, reflecting increasing investor confidence. The stock currently trades at a forward price/earnings ratio of 22.62, higher than the industry average of 20.71, indicating its premium valuation in the market.
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