Celestica (CLS) Rallies 7% on Semiconductor Optimism

We recently published 10 Stocks Withstanding Market Turbulence. Celestica Inc. (NYSE:CLS) was one of the best performers on Thursday. Celestica jumped by 6.90 percent on Thursday to finish at $294.89 apiece as investors loaded portfolios in semiconductor stocks on strong confidence amid a market bloodbath dampened by Bitcoin’s sharp fall during the day. The rally was further supported by a strong earnings performance last year, with net income soaring by 94.5 percent to $832.5 million from only $428 million in 2024, as revenues surged by 29 percent to $12.39 billion from $9.6 billion year-on-year. In the fourth quarter alone, net profit totaled $267.5 million, marking a 76 percent jump from $151.7 million in the same period a year earlier. Revenues jumped by 44 percent to $3.6 billion from $2.5 billion year-on-year. Encouraged by the results, Celestica Inc. (NYSE:CLS) raised its full-year 2026 revenue growth outlook to $17 billion from $16 billion previously on expectations for stronger demand for AI-related data center technologies. This would imply a 37 percent jump from 2025 revenues. Adjusted earnings per share were also pegged at $8.75, versus $8.20 previously. “Our financial performance in the fourth quarter was very strong, with revenue of $3.65 billion and adjusted EPS (non-GAAP)* of $1.89, both exceeding the high end of our guidance ranges. We had a solid finish to 2025,” said Celestica Inc. (NYSE:CLS) President and CEO Rob Mionis. 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. 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.