Celestica Inc. (CLS) reported impressive fourth-quarter 2025 earnings, with adjusted EPS of $1.89 and revenues of $3.65 billion, surpassing estimates. The Connectivity & Cloud Solutions segment saw a 64% revenue increase. The company’s focus on high-value markets and AI applications is driving growth, particularly in networking and data center products.

Celestica’s innovative portfolio includes the SD6300 storage system for AI data centers. Strong demand for 800G switches and AI/ML compute business is expected to boost growth. The company’s key revenue generators are major tech stocks like GOOGL, META, AMZN, and MSFT.

With a bullish outlook for 2026, Celestica expects revenues of $17 billion and an EPS of $8.75. The company’s strong growth projections have led to solid estimate revisions, with expected revenue and earnings growth rates for the current and next year showing positive trends.

The short-term average price target for Celestica’s stock indicates a potential 26.4% increase. The company’s industry, Electronics – Manufacturing Services, is in the top 7% of the Zacks Industry Rank, with strong returns. Celestica’s position in the AI data center market makes it a compelling investment opportunity.

A semiconductor stock poised to capitalize on the data center market’s growth is gaining attention. This under-the-radar chipmaker offers unique products for data centers, presenting a significant growth opportunity. Investors can explore this stock for potential long-term gains in the expanding digital infrastructure space.

Read more at Nasdaq: Should You Buy Celestica as a Global Leader in AI-Powered EMS Space?