Leveraging solid demand trends driven by healthy AI traction, Celestica Inc. (NYSE: CLS) has surged 77.4% over the past year compared with the industry's growth of 10.9%. It has outperformed peers like Flex Ltd. (NASDAQ: FLEX) and Jabil Inc. (NYSE: JBL) over this period.
Celestica is among the lesser-known winners of the artificial intelligence revolution. This Toronto, Canada-based company offers a one-stop shop for the electronics market, from design to manufacture to supply chain management, operating primarily as a behind-the-scenes partner for other electronics-based firms. With a diverse portfolio of products that form an integral part of AI applications, Celestica's healthy growth momentum is likely to continue.
One-Year Price Performance
Image Source: Zacks Investment Research
Generative AI Boom Fueling CLS Growth Momentum
Riding on the generative AI boom, Celestia is witnessing robust demand for AI/ML compute and networking products from hyperscale customers. In addition to the high-performance 800G family of network switches (which are vital for data centers that power AI applications) and storage solutions like the SC6100 controller and SD6200 platform (which provide efficient and scalable data storage for AI), Celestia offers Photonic Fabric – an optical compute and memory fabric solution capable of supercharging AI infrastructure. This ...
