Thoughts on CLS.TO (Celestica Inc.)

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Bought this at around $100 during AI hype boom now everyone is saying including IMF that AI is in bubble territory. The stock price is just ridiculous now. A recent G&M article says as long as AI companies are investing in infrastructure they will be in business any glitch there will be felt in the stock price. What are your thoughts on this stock.

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Asked on October 28, 2025 6:15 pm
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This is a stock I felt was overvalued 5-6 months ago but has gone up a ton in price since. Celestica was a very average company operationally for 15+ years and then kind of had AI fall into its lap. It provides the exact products a lot of these companies are looking for to build out data center infrastructure. Think GPU cooling racks, etc.

You are correct that any sort of blip in terms of AI capital expenditure and data center buildouts will be felt in Celestica's stock price. Right now, the stock is trading in relation to the company's guidance. If that guidance is missed or is downgraded, you will feel it in the stock price.

In a world where AI capital expenditures and data center buildouts continue to accelerate, Celestica could continue to increase in share price. Which is what makes this one so difficult to sell. I can imagine this is the situation you're going through now.

But on the flip side, any material downgrade to AI capital expenditures or the hyperscalers slowing down, a 50%+ drawdown in Celestica's price wouldn't be all that farfetched.

I tend to lean more towards the fact we aren't ramping down AI related buildouts anytime soon and there will still be some short-term tailwinds for Celestica, but I wouldn't be buying it at today's valuations.

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Posted by Dan Kent
Answered on November 3, 2025 7:36 am
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Thanks for the detail reply.
(zasid zasidza at November 5, 2025 6:59 pm)