Celestica Set for 3Q Outperformance on AI Switch Demand

Dow Jones10-08 22:45

1045 ET - Celestica's 3Q will likely top expectations, says CIBC's Todd Coupland, who sees improving visibility and a strong slate of big tech customers. In a report, the analyst says "CLS remains in a powerful positive revision cycle, supported by improving visibility and share gains across customers we believe include GOOGL, META, AMZN and OpenAI." He also sees additional upside from hyperscalers tied to the AMD Helios platform. For 2027, he sees OpenAI and AMD Helios to each contribute more than 10% of revenue. "Celestica's improved visibility reflects its leadership in data centre networking switches and expanding enterprise server programs," Coupland adds, estimating a multi-year ramp up to 1.6T networking programs starting in late 2026.

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