Aletheia Capital Initiates Coverage on Celestica Inc (CLS) With a Buy Rating

​Celestica Inc. (NYSE:CLS) is one of the Hottest Large-Cap Stocks to Buy Now. On October 13, Aletheia Capital initiated coverage on Celestica Inc. (NYSE:CLS) with a Buy rating and an associated price target of $350.

​The analyst in his research note highlighted the company’s key position as a manufacturing partner for Google’s TPU modules and networking switches. In addition, the company also plans to onboard OpenAI for its Capricorn server, which is the first ASIC-based AI server.

Aletheia Capital also noted that they anticipate the company’s Gothfish and Zebrafish ASIC server deployment for Google will increase in unit and content value from 2026 to 2027. This is expected to double Celestica Inc.’s (NYSE:CLS) enterprise revenue for fiscal 2026, with the potential to add another 50% growth for fiscal 2027.

​Moreover, the firm expects Celestica Inc. (NYSE:CLS) will also benefit from 800Gbps switch upgrades for AI infrastructure at Amazon and Google. Aletheia Capital believes the communication sales can triple to $12.6 billion from fiscal 2024 to fiscal 2027.

​Celestica Inc. (NYSE:CLS) designs and manufactures hardware platforms and provides supply chain solutions. The company operates through two main segments, including the Advanced Technology Solutions and Connectivity & Cloud Solutions.

While we acknowledge the potential of CLS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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