Celestica (CLS) Poised for Rapid Growth Amid AI Data Center Expansion
Celestica (CLS) is experiencing significant growth driven by the accelerating global build-out of AI data center infrastructure. According to research from SemiAnalysis, data center capacity additions are expected to surge significantly through 2027. Celestica's Connectivity and Cloud Solutions (CCS) segment has become a primary driver for the company, with revenue in its compute and storage sub-segment growing by 242% year-over-year. The company reported strong third-quarter results on October 26, featuring an 83% increase in revenue to $5.83 billion and more than doubled adjusted earnings per share. Due to this momentum, Celestica has raised its 2026 guidance and provided ambitious projections for 2027, suggesting the company may outpace major semiconductor players like Nvidia in terms of relative growth rate as it provides essential hardware for high-speed networking and custom AI chips.
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Topics: AI infrastructure Contract manufacturing Data centers Semiconductors