Celestica Expands AI Infrastructure Portfolio: Will it Fuel Revenues?

Celestica Inc. CLS recently expanded its AI infrastructure by introducing the SD6300 ultra-dense storage expansion system. The leading-edge storage platform is engineered to match the growing requirements of data-intensive AI applications in both legacy enterprise and hyperscalers data centers.

Substantial data surge due to growing AI workloads and bandwidth-intensive applications, combined with constraints related to data center floor space, has created some major problems for hyperscalers. Increasing costs of hardware and real estate are driving up capex and opex, which eventually put pressure on profit. Celestica’s latest product launch aims to address these issues.

The SD6300 maximizes storage density per rack, enhancing floor space utilization. The solution features four dedicated SAS-4 drive bays, supporting SAS-4 solid-state drives. The SAS 4 uplink offers high-speed data connections. Owing to such innovative features, Celestica SD6300 effectively delivers cost savings while boosting the overall storage performance. It matches the density, performance and reliability requirements needed to support emerging use cases like AI data ingest and AI data archiving phases, as well as legacy applications such as data lakes, big data and analytics.

Per a report from Mordor Intelligence, the AI data center market is expected to witness a compound annual growth rate of 25.85% from 2025 to 2030. CLS is swiftly expanding its portfolio to capitalize on these market trends. The SD6300 is ideal for multiple use cases across several sectors, including energy, healthcare, government and financial services.

How Are Competitors Faring?

Celestica faces competition from Jabil, Inc. JBL and Flex LTD. FLEX in the AI infrastructure space. Jabil is set to invest $500 million over the next several years in the Southeast U.S. region. The investment is focused on expanding manufacturing capabilities and workforce development for the cloud and AI data center infrastructure market. The strategic investment will strengthen Jabil’s position in the AI hardware supply chain.

Flex is aggressively moving into the high-growth data center market. The company is collaborating with prominent industry leaders such as LG and NVIDIA to boost its portfolio in the AI data center infrastructure market. In 2026, Flex remains on track to generate approximately $6.5 billion in revenues from data centers, implying year-over-year growth of at least 35%.

Celestica's Price Performance, Valuation & Estimates

Celestica’s shares have soared 256.3% over the past year compared with the industry’s growth of 109.1%.

From a valuation standpoint, Celestica trades at a forward price-to-earnings ratio of 38.99, up from the industry average.

The Zacks Consensus Estimate for Celestica’s earnings for 2025 and 2026 has increased in the past 60 days.

Celestica currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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