Celestica Inc. (NYSE:
CLS) is one of the
High-Flying Tech Stocks to Buy. On January 23, RBC Capital reiterated an Outperform rating on the stock with a $400 price target. Earlier, on January 20, Aletheia Capital also reiterated a Buy rating on Celestica Inc. (NYSE:CLS) and raised the price target from $330 to $410.
Recently, on January 22, DigiTimes report stated that Inventec, one of the competitors of Celestica Inc., is expected to expand its role in Google Tensor Processing Unit manufacturing and ramp AI server production in 2026. The news caused the stock price of CLS to fall roughly 11%. Analysts at RBC Capital view the news and the market reaction to be excessive and reaffirmed that the company remains attractively placed in a high-demand market. The firm added that Celestica Inc. (NYSE:CLS) has maintained a majority of TPU assembly volumes driven by the company’s high production yields.
The firm added that competition and potential market share shifts pose risks to Celestica’s growth. However, they see the company to be well-positioned to capitalize on the growing demand from hyperscalers into 2027.
Similarly, Aletheia Capital noted higher average selling prices for Google’s Zebrafish modules and confirmed that it is a parallel product line to Sunfish, not a cheaper inference version. The firm expects this higher average selling price to boost the company’s enterprise revenue by roughly 30% and will also help maintain the 75% to 80% share of Google’s TPU module production.
Celestica Inc. (NYSE:CLS) is a global electronics manufacturing services (EMS) company that is based in Canada. The company specializes in design, manufacturing, hardware platform, and supply chain solutions to deliver end-to-end product lifecycle solutions for various industries, including technology, aerospace, industrial, and healthcare.
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
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Disclosure: None. This article is originally published at
Insider Monkey.
