Celestica Could Benefit Massively From Jalapeño Chip Ramps (Rating Upgrade)

Oakoff Investments Investing Group Follow Summary Celestica delivered 62% revenue growth and 83% adjusted EPS growth, supported by strong AI infrastructure demand and expanding operating leverage. The Communications and Cloud Solutions segment generated 81% of sales, with server and storage revenue increasing 167% year-over-year during the quarter. Adjusted EBITDA margins expanded 80 basis points as higher volumes, improved product mix, and high-margin AI programs strengthened profitability operations. OpenAI’s Jalapeño chip ramp could enhance Celestica’s systems integration opportunity, supporting structurally higher margins through 2027 across scalable compute deployments. Applying a 25-times fiscal 2027 earnings multiple suggests a $393 per share valuation, representing over 27% upside from current trading levels. Looking for more investing ideas like this one? Get them exclusively at Beyond the Wall Investing. Learn More » JHVEPhoto/iStock Editorial via Getty Images Updating My "Buy" On CLS In the past, Celestica Corporation ( CLS ) stock used to be trading as a low-margin, commoditized electronics manufacturer with a very limited scope of opportunities. But then AI came and changed This article was written by Oakoff Investments 10.64K Followers Follow Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information. He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CLS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.