Celestica Inc. (NYSE: CLS; TSX: CLS) is back in the spotlight on December 15, 2025 after a sharp pullback that reminded investors of an uncomfortable truth: even “AI infrastructure winners” can get whipsawed when the market mood flips.
On the NYSE, Celestica closed at $306.50 on December 12, down $44.91 (-12.78%), and was indicated higher in early pre-market trading on December 15 around $312.10 (+1.83%). [1]
So what’s driving the move, what’s new in today’s news flow, and what do forecasts look like heading into 2026?
Why Celestica stock dropped: the selloff was bigger than one company
The most important context for CLS stock today is that the move wasn’t happening in a vacuum.
In Canada, Reuters reported that on December 12, the TSX’s technology sector fell sharply and Celestica ended 12.9% lower, with the broader market narrative focused on a rotation out of tech amid valuation doubts and worries about frothy AI trade positioning. [2]
That matters for Celestica because the company sits right at the intersection of two things markets love to re-price aggressively:
- High-growth AI/data center exposure (which invites “great expectations”), and
- Valuation sensitivity (which invites sudden repricing when rates or sentiment move).
Reuters explicitly tied the broader risk-off tone to rising concern about an “AI-fueled bubble” and long-term borrowing costs increasing. [3]
In other words: Celestica didn’t need to “do anything wrong” to get hit. When markets decide to de-risk the AI complex, high-momentum names can drop fast—especially after a powerful run earlier in the year.
What’s new on December 15: institutional filing headline and a reminder of insider activity
The most widely circulated Celestica-specific headline on December 15 is tied to an institutional filing.
MarketBeat reported that B. Riley Wealth Advisors disclosed a new stake of 11,319 shares purchased during Q2, valued at about $1.77 million, and noted that institutional investors own roughly 67.38% of Celestica shares. [4]
The same report highlighted an insider signal that investors tend to watch in volatile periods: director Laurette T. Koellner acquired 6,000 shares on October 30 at an average price of $341.67 (about $2.05 million), while overall insider ownership was cited around 0.52%. [5]
None of this “explains” a one-day selloff by itself. But on a day when traders are asking whether the dip is a temporary shakeout or something uglier, ownership and insider actions often get pulled back into the conversation.
Celestica’s fundamental outlook: the company is guiding for a bigger 2026
The bull case around Celestica stock is not subtle: the company is positioning itself as a key builder of modern data center infrastructure (networking, storage, and systems), and management has already put meaningful numbers on what they expect next year.
In its Q3 reporting package (filed with the SEC), Celestica reported Q3 2025 revenue of $3.19 billion and non-GAAP adjusted EPS of $1.58. [6]
More importantly for valuation, Celestica also laid out forward guidance, including:
- Q4 2025 guidance: revenue $3.325B to $3.575B, adjusted EPS $1.65 to $1.81 [7]
- Raised 2025 outlook: revenue $12.2B, adjusted EPS $5.90 [8]
- 2026 annual outlook: revenue $16.0B, adjusted EPS $8.20 [9]
Those numbers—especially the jump implied by the 2026 outlook—are why Celestica has been treated as a “data center infrastructure compounder” rather than a traditional contract manufacturer.
The tradeoff is that once a company starts getting priced like that, the stock can react violently to anything that threatens the narrative (rates, sector rotation, hyperscaler capex worries, or simply “too far, too fast”).
Analyst forecasts as of Dec. 15: price targets remain above the current level, but the spread matters
Analysts are still broadly constructive on CLS—at least in consensus data sets—but the details vary by provider and coverage universe.
TipRanks: “Strong Buy” consensus and ~$369 average target
TipRanks shows an average 12‑month price target of $368.77, with a high forecast of $440 and a low forecast of $300, based on analysts issuing targets over the last three months. TipRanks also lists a “Strong Buy” consensus (more Buys than Holds, and no Sells in that snapshot). [10]
MarketBeat: “Moderate Buy” and ~$336 average target
MarketBeat shows a $336.13 consensus price target (with a wide range that includes a high target of $440), and labels the consensus rating “Moderate Buy.” [11]
How to read the gap between targets
When you see meaningful differences between “average targets,” it’s usually not because analysts can’t do arithmetic—it’s because:
- different platforms track different sets of analysts,
- they use different time windows, and
- some may weight targets differently.
The practical takeaway: the Street is still generally above the current price, but the dispersion (and the existence of lower targets in the mix) is a reminder that the stock’s future is not a one-way bet.
The analyst thesis in one sentence: hyperscaler capex and AI networking demand
A recurring theme in Celestica coverage is that growth is being pulled forward by hyperscalers building AI infrastructure at scale—especially in networking and related hardware.
A summary carried by Finviz noted that Barclays maintained an Overweight rating and nudged its price target higher, while Citi upgraded the stock to Buy (with Citi commentary pointing to expectations for strong hyperscaler capex growth into 2026). [12]
This is the “why Celestica” story in 2025–2026: not just AI chips, but the plumbing—switching, storage density, racks, integration, and the supply chain machinery required to ship real hardware into real data centers.
Options and sentiment check: unusual activity picked up earlier in December
Short-term traders also watch the options market for clues about positioning—though it’s not a crystal ball (options can be hedges, spreads, or outright speculation).
Benzinga reported 10 unusual options trades in Celestica on December 10, with more calls than puts in its snapshot (8 calls vs. 2 puts) and cited the notional value of those trades. [13]
This doesn’t “predict” direction on its own—but it does fit the broader picture: CLS has become a stock where institutional traders and fast money are active, which can amplify swings.
Product and business momentum: Celestica keeps shipping “AI-era” infrastructure
While today’s headlines are dominated by price action and ownership notes, Celestica’s underlying narrative is being supported by a steady cadence of product announcements tied to AI data centers.
1.6TbE switching for AI/ML clusters
In October, Celestica announced a family of 1.6TbE data center switches (DS6000 and DS6001) designed for AI/ML clusters, built on Broadcom Tomahawk 6, with up to 102.4 Tbps switching capacity. [14]
Ultra-dense storage for data growth
In November, Celestica introduced the SD6300 storage platform aimed at AI and hyperscale environments, emphasizing storage density and data center floor space efficiency. [15]
These releases aren’t just marketing. They’re meant to reinforce that Celestica is not merely “assembling boxes,” but trying to occupy higher-value positions in the data center stack (design, platforms, integration, and scalable manufacturing).
Governance update investors should know: a director plans to exit in January 2026
Separately from products and forecasts, Celestica disclosed a board change in a Form 8‑K: Dr. Luis Müller informed the company of his intention to resign from the board (and his audit committee chair role), effective January 28, 2026, for personal reasons and not due to any disagreement with the company. [16]
This isn’t the kind of news that typically moves a stock day-to-day, but it’s part of the “current file” for anyone doing diligence.
Valuation debate: “undervalued narrative” vs. “expensive multiple” tension
As Celestica has rallied over the past year, the debate has shifted from “is this company executing?” to “how much execution is already priced in?”
A Simply Wall St analysis published December 14 framed Celestica as potentially undervalued under its narrative model (it cited a fair value estimate above the last traded price on the TSX), but also emphasized that by a simpler price-to-earnings lens, the stock looks expensive versus industry benchmarks, increasing sensitivity to any growth disappointment. [17]
That tension is exactly what makes CLS volatile: the story can remain strong while the market argues about how much of the future you should pay for today.
What to watch next for Celestica (CLS) stock
Celestica’s near-term direction is likely to be shaped by a collision of fundamentals, positioning, and macro:
1) Next earnings and guidance refresh
Investors will be looking for confirmation that the revenue/EPS trajectory implied by management’s outlook is holding up—especially around AI networking and cloud demand. [18]
2) Hyperscaler capex narrative
If the market stays confident that hyperscalers will keep spending aggressively on AI infrastructure into 2026, Celestica’s story tends to strengthen. If that confidence cracks, the multiple can compress fast. [19]
3) Interest rates and “AI valuation” risk appetite
Reuters’ December 12 market report made clear that broader “AI trade” valuation anxiety can spill directly into Celestica’s tape. [20]
4) Whether the dip gets bought
The early pre-market bounce on December 15 suggests dip-buyers are at least present. [21]
But in momentum names, the real test is whether rebounds can hold when liquidity returns in the regular session.
Bottom line
As of December 15, 2025, Celestica Inc stock is trading like a modern AI infrastructure proxy: strong growth expectations and bullish analyst targets on one side, and sudden, violent re-pricing when the market decides to question tech valuation on the other.
The “current” picture is a blend of:
- a sharp late-week drop and early-week bounce attempt [22]
- fresh ownership-focused headlines and reminders of insider buying [23]
- a 2026 outlook that implies a materially larger business [24]
- forecasts that remain above today’s price, but with a wide target range [25]
References
1. stockanalysis.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.marketbeat.com, 5. www.marketbeat.com, 6. www.sec.gov, 7. www.sec.gov, 8. www.sec.gov, 9. www.sec.gov, 10. www.tipranks.com, 11. www.marketbeat.com, 12. finviz.com, 13. www.benzinga.com, 14. www.globenewswire.com, 15. www.globenewswire.com, 16. www.stocktitan.net, 17. simplywall.st, 18. www.sec.gov, 19. finviz.com, 20. www.reuters.com, 21. stockanalysis.com, 22. stockanalysis.com, 23. www.marketbeat.com, 24. www.sec.gov, 25. www.tipranks.com
