Celestica (CLS) Rides Broadcom Jump to Fresh Peak

We recently published Monstrous Gains: 10 Stocks Leaving Wall Street in the Dust. Celestica Inc. (NYSE:CLS) is one of the best performers on Friday.

Celestica soared to a new all-time high on Friday, extending a winning streak for a fourth consecutive day, as optimism for semiconductor giant Broadcom Inc. (NASDAQ:AVGO) spilled over to the company.

During the session, Celestica Inc. (NYSE:CLS) climbed to a new 52-week high of $257.4, or a 16-percent jump, before trimming gains to finish the day up by only 9.64 percent at $242.68 apiece.

This followed Broadcom’s stellar earnings report and news of a newly clinched $10 billion custom chip supply deal with OpenAI. Investors highly expected that the new deal would largely benefit Celestica Inc. (NYSE:CLS) in terms of revenues, having been a longtime manufacturing and supply chain partner of the semiconductor giant.

In recent news, Celestica Inc. (NYSE:CLS) said net income for the second quarter of the year jumped by 122 percent to $211 million from $95 million in the same period last year. Revenues grew by 21 percent to $2.89 billion from $2.39 billion year-on-year.

For full-year 2025, Celestica Inc. (NYSE:CLS) has raised its revenue growth outlook to $11.55 billion from $10.85 billion as expected previously, while that for the third quarter is targeted at a range of $2.875 billion to $3.125 billion.

While we acknowledge the potential of CLS  as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.