Key insights
- Celestica begins shipping its 1.6TbE AI data center switches, powered by Broadcom's Tomahawk 6. This signals continued growth in AI infrastructure spending and demand for high-speed networking. While CLS stock has surged, analysts suggest it may be overvalued. The news is moderately bullish for the semiconductor and data center sectors, reflecting ongoing investment in AI capabilities.
TORONTO - Celestica Inc. (NYSE:CLS) (TSX:CLS) announced today that its DS6000-series 1.6TbE switches are available for order to initial customers, according to a press release statement. The company’s stock has surged 315% over the past year, reflecting strong investor confidence in its AI infrastructure positioning, though shares currently trade near their 52-week high of $423.
The DS6000-series includes two models: the air-cooled 3RU DS6000 for standard 19-inch racks and the hybrid-cooled 2OU DS6001 for 21-inch OCP ORv3 environments. Both models are powered by Broadcom Tomahawk 6 switch silicon and deliver up to 102.4 Tbps of non-blocking switching capacity. Celestica’s revenue grew 37% in the last twelve months, driven largely by surging demand for AI data center equipment, with analysts forecasting 54% revenue growth this year.
The switches feature 64 ports of 1.6TbE connectivity and support both high-speed copper interconnects and 1.6TbE optical interconnects. The platforms are designed for AI training clusters and comply with Ultra Ethernet Consortium and Open Compute Project Ethernet Scale-up Network specifications.
"The move to 1.6TbE networking represents a monumental leap in data center evolution," said Gavin Cato, SVP & GM of AI Platform Engineering at Celestica.
Hasan Siraj, Vice President of Product Management at Broadcom’s Core Switching Group, said Celestica is among the first to ship systems powered by Tomahawk 6 silicon.
Sameh Boujelbene, Vice President at Dell’Oro Group, stated that Celestica has established a position in high-speed data center switch port shipments.
Dennis Levenson, Vice President of Vendor Management at TD SYNNEX, commented on the availability of the DS6000 series for customers.
Celestica will showcase the DS6001 at the OCP Regional Summit in Barcelona, Spain, from today through Wednesday. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value. Investors can access 18 additional InvestingPro Tips and comprehensive Pro Research Reports covering this and 1,400+ other US equities for deeper analysis.
In other recent news, Celestica Inc. reported impressive financial results for the first quarter of 2026, surpassing analyst expectations in both earnings and revenue. The company posted an earnings per share (EPS) of $2.94, which exceeded the forecasted $2.82. Additionally, Celestica achieved revenue of $5.51 billion, outperforming the anticipated $5.49 billion. These results indicate strong performance for the company in the early part of the year. The positive earnings announcement has been well-received by investors. This development highlights Celestica’s ability to deliver better-than-expected financial outcomes. Analysts had anticipated slightly lower figures, making the actual results a notable achievement for the company.
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