Celestica Wins OpenAI/Broadcom Contracts - AI Shovel With Premium Growth Prospects

Juxtaposed Ideas 16.03K Followers Follow Summary Celestica's AI monetization partnerships grow beyond META and GOOG to AMD, OpenAI, and AVGO, proving its AI pick & shovel status. Combined with the growing pipelines and the expanding capacity, the management has twice raised the FY2026 guidance while offering outsized FY2027 guidance. CLS has become more compelling post-meltdown at a P/E of 28.86x and a 3Y PEG of 0.44x, supporting a bull-case long-term price target of $778. Risks include customer/cloud concentration, seasonal weakness through September, insider selling, and potential consolidation amid macro headwinds. CLS is upgraded to buy here, aided by the improved margin of safety from the technical bottoming at $300s and the reasonable RSIs. Rawf8/iStock via Getty Images I previously rated Celestica Inc. ( CLS ) as a Hold in April 2026, despite the robust profitable growth prospects from the multi-year cloud super cycle. In this article, I shall discuss why CLS is finally upgraded as This article was written by Juxtaposed Ideas 16.03K Followers Follow I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles. Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, META, AVGO, AMD 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. The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss. 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.