Celestica (CLS) Stock: Latest News, AI Data Center Outlook and Analyst Targets as of December 3, 2025

Celestica Inc. (NYSE: CLS, TSX: CLS) has become one of 2025’s most explosive AI infrastructure plays. After a huge run and fresh product launches, the stock is now digesting gains in a bout of volatility. Here’s what investors need to know today.

Celestica stock today: still near highs, but volatility is back

As of the close on Tuesday, December 2, 2025, Celestica’s U.S.-listed shares finished at $304.29, down 4.4% on the day from $318.37. ^[1]

Key snapshot metrics:

Market cap: about $35 billion. ^[2]
52‑week range:$58.05 – $363.39 – the stock has multiplied from its lows and now trades roughly 16% below its recent high near $363. ^[3]
Valuation: trailing P/E ~49 and beta around 1.8, highlighting both a premium multiple and elevated volatility. ^[4]
Moving averages: price remains well above its 50‑day (~$292) and 200‑day (~$214) averages, keeping the long‑term uptrend intact despite near‑term selling. ^[5]

Technical services are split on what happens next:

StockInvest.us flags CLS as a “Strong Sell candidate” in the near term, citing a pivot top on November 5, negative moving‑average signals and a volatile 10.5% intraday range on December 2. Yet its model still projects the stock could rise about 40% over the next three months, with a 90% probability band between roughly $408 and $539 if the broader uptrend holds. ^[6]
Stock Traders Daily’s Trend Tracker shows AI‑generated trading plans on the Toronto line (CLS:CA) with a “weak” near‑term rating, “neutral” mid‑term and “strong” long‑term, underscoring a constructive structural trend but caution for short‑term traders. ^[7]

In other words: Celestica is no longer an under‑the‑radar value play. It’s an AI winner that has already re‑rated higher — and is now experiencing the kind of violent swings that often follow parabolic runs.

Why Celestica stock ran so far, so fast

Celestica is a Toronto‑based electronics manufacturing and hardware platform company that historically toiled in the background of the supply chain. It now operates through two segments:

Connectivity & Cloud Solutions (CCS) – servers, storage and networking platforms for data centers and cloud providers.
Advanced Technology Solutions (ATS) – aerospace/defense, industrial, health tech, capital equipment and related services. ^[8]

In 2025, the narrative changed dramatically as the AI data center build‑out made Celestica’s CCS products a critical part of hyperscaler infrastructure. Recent coverage from Investor’s Business Daily notes that the stock has surged roughly 270% this year, earning a top‑tier 99 Composite Rating in its system — but also warns of “climax‑type” action after such a run. ^[9]

Zacks has repeatedly highlighted Celestica as a top growth name in the AI hardware ecosystem, pointing to rapid revenue and earnings revisions as hyperscaler spending accelerates. ^[10]

Now let’s dig into the concrete numbers driving that enthusiasm.

Q3 2025: blowout quarter on the back of AI data centers

Celestica’s Q3 2025 results, released October 27, were well ahead of expectations and sit at the heart of the current bull case. ^[11]

Headline numbers:

Revenue:$3.19 billion, up about 28% year over year, and above consensus near $3.0 billion. ^[12]
Adjusted EPS:$1.58, up roughly 52% from $1.04 a year ago and beating the ~$1.45 analyst estimate. ^[13]
Non‑GAAP operating margin: a record 7.6%, up from 6.8% in Q3 2024. ^[14]
Free cash flow: about $88.9 million on $126.2 million in operating cash. ^[15]

Segment detail:

CCS (Connectivity & Cloud Solutions)
- Revenue: $2.41 billion, up 43% year over year.
- Adjusted operating margin: 8.3%, up from 7.6%.
- Within CCS, hardware platform solutions (servers and storage) grew ~79% to $1.4 billion, driven primarily by AI data center demand. ^[16]
ATS (Advanced Technology Solutions)
- Revenue: $780 million, down about 4%, but margin improved to 5.5% from 4.9%. ^[17]

Management has emphasized that AI data centers are now Celestica’s largest and fastest‑growing end market, fueled by large programs for major hyperscaler customers. ^[18]

The quarter didn’t happen in isolation either. Q2 2025 already showed momentum, with revenue near $2.9 billion and adjusted EPS around $1.39, both significantly higher than a year earlier. ^[19]

2025–2026 guidance: aggressive growth, and some say it’s still conservative

On the back of Q3, Celestica raised its 2025 outlook and issued full 2026 guidance that blew past Wall Street’s previous expectations. ^[20]

Updated 2025 outlook

For full‑year 2025, management now expects: ^[21]

Revenue: about $12.2 billion, implying ~26% growth versus 2024.
Non‑GAAP adjusted EPS:$5.90, implying roughly 52% EPS growth.
Non‑GAAP operating margin: ~7.4%.
Free cash flow: around $425 million.

This outlook is notably higher than the company’s own prior 2025 guide of $11.55 billion in revenue and $5.50 in EPS. ^[22]

2026 guidance

Looking ahead to 2026, Celestica is targeting: ^[23]

Revenue:$16.0 billion (~31% growth vs. the 2025 outlook).
Non‑GAAP EPS:$8.20 (~39% growth vs. 2025).
Non‑GAAP operating margin: roughly 7.8%.
Free cash flow: about $500 million.

Before this guidance, Wall Street had been modeling just $14.1 billion in 2026 revenue and $7.22 in EPS, so the company’s targets sit well above the prior consensus. ^[24]

Some independent analysts argue that even these numbers may be conservative given the size of the AI build‑out. One widely cited note, for example, references a Citi estimate that AI infrastructure spending could exceed $2.8 trillion by 2029, suggesting a long runway for suppliers like Celestica if they can maintain share. ^[25]

What the guidance implies for valuation

At the recent $304 share price and roughly $35 billion market cap: ^[26]

The stock trades around 52x management’s 2025 EPS goal of $5.90.
On the 2026 EPS target of $8.20, the forward P/E is still about 37x.
If free cash flow reaches $500 million in 2026, the FCF yield would be only around 1.4% at today’s market cap, assuming no change in valuation.

That’s a rich multiple even for a company growing revenue 30%+ and EPS nearly 40%. The market is clearly pricing in enduring AI data center tailwinds and relatively low execution risk.

New AI infrastructure products: SD6300, DS4100 and 1.6TbE switches

Celestica’s fundamental story is tightly linked to a wave of new hardware aimed at AI and high‑performance data centers.

SD6300: ultra‑dense storage for AI workloads

On November 17, 2025, Celestica introduced the SD6300 ultra‑dense storage expansion system — a 4U SAS‑4 JBOD platform that can pack up to 108 3.5‑inch drives into a single chassis. ^[27]

Key points:

Designed specifically for data‑intensive AI workloads, including AI data ingest, archiving and large data lakes. ^[28]
Focuses on maximizing storage density per rack and improving floor‑space utilization, critical as hyperscalers wrestle with power and real‑estate constraints. ^[29]
Uses SAS‑4 interfaces with high‑speed uplinks to help reduce bottlenecks. ^[30]

A Yahoo Finance feature notes that Celestica’s Toronto‑listed shares jumped roughly 21.5% around the time of the SD6300 launch, underscoring just how hungry the market is for AI‑linked catalysts. ^[31]

800G DS4100 switch for AI networks

Celestica has also been rolling out advanced networking gear. The DS4100, first launched in late 2024 and now shipping broadly in 2025, is an 800G top‑of‑rack/leaf‑spine switch with: ^[32]

16 x 800G OSFP ports and 12.8 Tbps non‑blocking switching capacity.
Optimisation for AI/ML clusters, big data analytics, HPC and hyperscale cloud.
Support for open network operating systems like SONiC and ONIE.

This switch is positioned to help customers migrate to 800G networking, while Celestica’s blog emphasises power efficiency and lower per‑port cost, potentially broadening adoption beyond tier‑one hyperscalers. ^[33]

New 1.6TbE DS6000 / DS6001 switches

On October 10, 2025, Celestica went a step further, unveiling two 1.6 terabit Ethernet (1.6TbE) switches, the DS6000 and DS6001, which double the switching capacity of its current 800G line. ^[34]

Highlights:

Designed specifically to power AI/ML clusters with 102.4 Tbps of switching performance. ^[35]
Offer advanced AI routing features and multiple interconnect options to build large‑scale AI fabrics. ^[36]

Combined with SD6300 on the storage side, these launches support the narrative put forward by analysts on Seeking Alpha that “Celestica is building a data center ecosystem,” not just selling commodity boards. ^[37]

Capital returns: a fresh buyback program

Alongside its growth plans, Celestica is ramping capital returns.

On October 30, 2025, the company announced that the Toronto Stock Exchange approved a new Normal Course Issuer Bid (NCIB) allowing Celestica to repurchase up to 5,722,527 common shares, about 5% of its public float, between November 3, 2025 and November 2, 2026 (or earlier if completed). ^[38]

Key details:

Purchases may occur on the TSX, NYSE or alternative trading systems, within daily volume limits (roughly 221,734 shares per day on the TSX, subject to block exceptions). ^[39]
The program will be funded with existing cash and/or credit facility drawings, and all repurchased shares will be cancelled. ^[40]
Under the prior NCIB, Celestica had already repurchased roughly 1.5 million shares at a weighted average price of about US$92.26. ^[41]

Celestica does not pay a regular dividend, so buybacks are the primary direct capital‑return mechanism. ^[42]

At today’s valuation, the NCIB may be more about signaling confidence and offsetting stock‑based compensation than dramatically shrinking the share count — but it still supports per‑share metrics if executed consistently.

Insider and institutional activity: what the filings say

Several Form 4 filings in early December add fresh context:

On December 1, 2025, Celestica’s Chief Human Resources Officer saw 6,802 RSUs vest into common shares, with 3,642 shares withheld for taxes and 3,160 shares sold at $323.38, leaving 13,892 shares directly owned. ^[43]
Around the same period, CFO Mandeep Chawla had 20,408 RSUs vest, with 10,925 shares withheld at $344.41 for taxes. After the transactions, he still owns 9,483 shares outright. ^[44]

These transactions are largely routine vesting and tax‑withholding events, not open‑market sales initiated by executives. They do, however, underscore just how far the stock has run — the withheld shares alone represent seven‑figure tax bills at current prices.

On the institutional side, MarketBeat’s December 2 piece highlights heavy inflows from major funds, including Arrowstreet, Viking Global and Norges Bank, and estimates that about two‑thirds of the float is now in institutional hands, with insiders holding just over 0.5% and short interest around 4–5%. ^[45]

What Wall Street is saying about Celestica stock

A fresh MarketBeat survey published December 3 finds that Celestica currently carries an average rating of “Moderate Buy”: one Strong Buy, thirteen Buy and three Hold ratings. The consensus 12‑month price target is about $336, with the most bullish targets reaching into the $375–$400 range. ^[46]

Recent analyst moves include:

Stifel lifting its target to $385 while reaffirming a Buy. ^[47]
Citigroup upgrading Celestica to Buy and moving its target to $375, citing an expectation that hyperscaler capex could grow ~75% in 2025 and 40%+ in 2026. ^[48]
Barclays reiterating Overweight with a price target recently nudged up to $359. ^[49]

A trading‑oriented piece from StocksToTrade on November 24 notes that at least one firm has already raised its target to $400 from $315, arguing that Celestica’s AI infrastructure focus and robust Q3 performance justify higher expectations, and pointing to the new NCIB as a potential support for the share price. ^[50]

On the fundamental side, a Motley Fool article hosted on Nasdaq framed Q3 as a “10% after‑hours surge” event and emphasized that Celestica’s 2026 guidance “breezed past” prior consensus figures, driven by booming AI data center demand from top hyperscalers like Amazon, Microsoft, Alphabet, Meta and likely Apple. ^[51]

Meanwhile, Zacks articles over the past few weeks have: ^[52]

Highlighted Celestica as a Zacks Rank #1 (Strong Buy) and one of two top tech stocks to buy in December, alongside Robinhood.
Noted that EPS and revenue estimates for 2025 and 2026 have been steadily revised higher following Q3.
Flagged technical strength as CLS broke above its 50‑day moving average, even as they cautioned about volatility.

Not all third‑party models are bullish. As noted, StockInvest.us recently downgraded its AI‑driven technical view from “Buy” to “Strong Sell” for the short term, despite forecasting higher prices over a three‑month horizon — a good reminder that time frame matters in almost every CLS forecast. ^[53]

Key risks investors should watch

Even the strongest growth story comes with risk. For Celestica, some of the most important include:

AI capex cyclicality
Hyperscaler AI spending is booming today, but it can swing sharply with macro conditions, GPU supply, or shifts in architecture. A slowdown or digestion phase after an aggressive build‑out could pressure Celestica’s CCS revenue and margins.
Customer concentration
Celestica has deep relationships with the “top five hyperscalers”, which is a strength — but also a vulnerability if a single large customer reallocates spend or switches suppliers. ^[54]
Execution on ambitious 2025–2026 targets
Forecasting 30%+ revenue growth two years out leaves little room for missteps in program ramps, supply chain management or new product introductions.
Margin sustainability and competition
Rivals like Jabil (JBL) and Flex (FLEX) are also pushing aggressively into AI infrastructure. Zacks notes that both are investing heavily to grab share in the same data‑center TAM Celestica is targeting. ^[55]
Valuation risk
At ~37x 2026 EPS guidance and sub‑2% implied FCF yield, even small disappointments in growth or margins could trigger outsized share price reactions. ^[56]
Balance sheet and buyback funding
While leverage remains moderate (debt‑to‑equity around 0.37), the NCIB allows repurchases funded in part by credit facility draws; if executed aggressively into a downturn, that could add financial risk. ^[57]

How Celestica stock looks on December 3, 2025

Putting it all together:

Fundamentals are strong. Revenue is growing close to 30% year over year, margins are expanding and AI data centers have become Celestica’s flagship growth engine. ^[58]
The roadmap is ambitious. Management’s 2026 targets call for revenue to grow from about $12.2 billion in 2025 to $16 billion, and EPS to climb from $5.90 to $8.20, well above earlier Street expectations. ^[59]
AI platform story is deepening. New storage (SD6300), 800G switches (DS4100) and 1.6TbE switches (DS6000/DS6001) show Celestica moving up the stack as a full‑platform supplier to AI and cloud data centers. ^[60]
Capital returns are turning on. A fresh NCIB targeting 5% of the float, combined with strong free‑cash‑flow guidance, signals management confidence — a positive in a capital‑intensive sector. ^[61]
Sentiment is bullish but not unanimous. Most fundamental analysts rate the stock a Buy with targets modestly above today’s price, while several technical and quant services are flashing caution after an extraordinary run. ^[62]

For investors, the core question on December 3, 2025 is not whether Celestica is benefiting from the AI infrastructure boom — it clearly is — but how much of that boom is already priced into CLS stock.

At current levels, Celestica looks like a high‑beta, high‑expectation AI infrastructure leader: potentially rewarding if management continues to execute and AI data‑center capex stays elevated, but vulnerable if the cycle cools or competition squeezes margins.

Important: This article is for informational and educational purposes only and does not constitute financial advice, investment recommendation or an offer to buy or sell any security. Always do your own research and consider consulting a licensed financial professional before making investment decisions.