Key insights
- The post discusses Celestica's (CLS) valuation and future growth potential within the AI infrastructure space, comparing it to peers like AVGO, MU, and AMD. It questions whether CLS's recent run-up has priced in most of the AI-related upside, or if it remains a good long-term investment. The discussion highlights the importance of understanding CLS's growth profile relative to its peers and whether its under-the-radar profile presents an opportunity.
Hi everyone,
I’m trying to get a more grounded view on Celestica (CLS) and would appreciate perspectives from long-term investors here.
CLS has had a strong run over the past year due to AI infrastructure demand (servers, networking, hyperscaler supply chain exposure), but recently the stock has been quite volatile and consolidating despite continued AI tailwinds.
CLS operates in the same broader AI infrastructure ecosystem as companies like Broadcom (AVGO), Micron (MU), SanDisk (SNDK), and AMD — benefiting from the ongoing AI buildout across data centers, networking, and hardware supply chains.
However, unlike some of these higher-profile AI names, CLS seems to have less hype and attention, despite being exposed to similar demand tailwinds.
A few things I’m trying to understand:
- Is CLS still in a strong long-term AI infrastructure growth phase, or has most of the re-rating already happened? * How does its growth profile compare to more prominent AI beneficiaries like AVGO, MU, SNDK, and AMD? * Does CLS’s relatively “under-the-radar” profile suggest inefficiency/opportunity, or slower re-rating potential? * After its strong run and recent consolidation, is this still a good entry point or has most of the AI-related upside already been priced in? * How do you view its positioning compared to other AI infrastructure / hardware names? * Does the recent consolidation suggest healthy digestion after a strong move, or slower future upside? * At current valuation levels, is it still attractive as a long-term compounder, or more of a “wait for pullback” setup?
Would appreciate any insights from people who follow the company or the AI infrastructure space closely.