Group 1 - Celestica Inc. (NYSE:CLS) experienced a significant stock price increase of 6.90% on Thursday, closing at $294.89, driven by strong investor confidence in semiconductor stocks despite broader market challenges [1] - The company's net income for the previous year surged by 94.5% to $832.5 million, up from $428 million in 2024, while revenues increased by 29% to $12.39 billion from $9.6 billion year-on-year [1] - In the fourth quarter, Celestica reported a net profit of $267.5 million, a 76% increase from $151.7 million in the same quarter the previous year, with revenues rising by 44% to $3.6 billion from $2.5 billion year-on-year [2] Group 2 - Celestica raised its full-year 2026 revenue growth outlook to $17 billion from a previous estimate of $16 billion, anticipating stronger demand for AI-related data center technologies, which represents a 37% increase from 2025 revenues [2] - Adjusted earnings per share for the company were projected at $8.75, an increase from the previous estimate of $8.20 [2] - The company's President and CEO, Rob Mionis, highlighted the strong financial performance in the fourth quarter, with revenue of $3.65 billion and adjusted EPS (non-GAAP) of $1.89, both exceeding guidance expectations [2]

Core Viewpoint - The article reflects the author's extensive experience as a Merchant Seaman and a growing interest in investing, particularly in technology stocks due to an engineering background [1]. Group 1 - The author has over 30 years of experience traveling the world as a Merchant Seaman [1]. - In the last 15 years, there has been a significant development in the author's interest in investing [1]. - The author attributes much of their investment knowledge to The Motley Fool [1]. Group 2 - The author has an engineering background, which influences their preference for technology stocks [1]. - There is a clear indication that the author does not hold any stock or derivative positions in the companies mentioned [1]. - The author expresses personal opinions in the article and is not receiving compensation for it, aside from Seeking Alpha [1].

Core Viewpoint - The article reflects a personal journey of an individual with a background in engineering who has developed a strong interest in investing, particularly in technology stocks, over the past 15 years [1]. Group 1 - The individual has over 30 years of experience as a Merchant Seaman, which has provided a global perspective [1]. - The interest in investing was significantly influenced by resources from The Motley Fool [1]. - The individual has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [1]. Group 2 - The article does not provide specific investment recommendations or advice, emphasizing that past performance does not guarantee future results [2]. - It clarifies that the views expressed may not represent those of Seeking Alpha as a whole, highlighting the diversity of opinions among its analysts [2]. - The authors of the articles include both professional and individual investors, some of whom may not be licensed or certified [2].

Core Viewpoint - The AI sector remains promising, with significant growth potential and opportunities for investment despite recent volatility in stock prices [7][40][67]. Market Overview - The AI stocks experienced a sell-off similar to previous market declines, with the S&P 500 dropping approximately 15% during a recent period [8]. - The current market is characterized by confusion, with geopolitical events influencing investor behavior and leading to volatility in both tech and safe haven sectors [17][22]. AI Sector Insights - The global AI market is projected to grow from $539 billion in 2026 to over $3 trillion by 2033, driven by investments from major tech companies and increasing demand for data centers [40][42]. - Adoption of AI technologies is expanding across various sectors, including healthcare and manufacturing, indicating a long-term trend rather than a temporary phase [15][20]. Stock Recommendations - The top 10 AI stocks recommended show an average revenue growth rate of 38% and an EPS growth rate of 99%, significantly outperforming the S&P 500 and the Magnificent Seven stocks [66][67]. - Specific stocks highlighted include: - **Lumentum Holdings (LITE)**: Up 402% in the last year, with a long-term growth rate of 61% [70]. - **Micron Technology (MU)**: Up 387% in the last year, with a long-term growth rate of 51% [72]. - **Ciena (CIEN)**: Up 215% in the last year, with a long-term EPS growth CAGR of 44% [74]. - **General Motors (GM)**: Up 76% in the last year, utilizing AI for enhanced vehicle connectivity [79]. - **Taiwan Semiconductor Manufacturing (TSM)**: Up 71% in the last year, with strong growth metrics [80]. - **Credo Technology (CRDO)**: Despite recent declines, it has strong growth potential with a forward EPS growth rate of 248% [97]. - **AppLovin (APP)**: Up almost 1000% within Alpha Picks, with a long-term growth rate of 48% [98]. - **Globus Medical (GMED)**: In the healthcare sector, showing strong growth metrics [100]. Investment Strategy - The strategy emphasizes buying on dips, particularly for stocks with strong fundamentals that have recently experienced price declines [35][106]. - The quant model used for stock selection focuses on multiple factors, including growth, value, and profitability, ensuring a diversified approach to investment [51][60].

Core Insights - Celestica, Inc. (CLS) reported strong fourth-quarter 2025 results with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by significant growth in the Connectivity & Cloud Solutions (CCS) segment [1][9] Financial Performance - Total revenues in the CCS segment increased by 64% year over year to $2.86 billion, with the Enterprise business revenues rising by 33% and the Communications end market achieving 79% growth [2] - Celestica generated $250.6 million in cash from operations, up from $143.4 million in the previous year, and free cash flow increased by 62.7% year over year to $155.9 million, indicating strong capital management [4] - The company's inventory balance rose to $2.19 billion, an increase of $427 million compared to the prior year, while cash cycle days improved by 8 days to 61 days, reflecting efficient inventory management [5] Strategic Partnerships and Market Position - Celestica is collaborating closely with Google on complex data center hardware, serving as the preferred manufacturing partner for Google's Tensor Processing Unit (TPU), and is expanding its capacity to support the adoption of these systems [3] - The company has outperformed its peers, with its stock increasing by 125.4% over the past year, compared to 74.4% growth in the Electronics - Manufacturing Services industry [10][11] Challenges and Risks - Growth is heavily reliant on AI data center spending by hyperscalers, with significant customer concentration risk as the top three customers account for approximately 63% of total revenues [6] - The Advanced Technology Solutions segment experienced a 1% decline in revenues year over year, and the company faces challenges from foreign exchange fluctuations and geopolitical volatility [7][6] Valuation Metrics - Celestica's shares are currently trading at a premium with a price/earnings ratio of 34.42 for forward 12-month earnings, compared to 23.59 for the industry [13]

Market Overview - The market has experienced significant volatility, with geopolitical events and economic uncertainties contributing to fluctuations. January saw a rotation between safe haven stocks and technology stocks, with commodities initially rising before pulling back [8][9][12]. - The AI sector is facing challenges, with fears of overvaluation leading to sell-offs, particularly among major technology stocks. The Nasdaq index was down nearly 2% at one point, driven by concerns surrounding NVIDIA and other AI-related investments [10][24]. AI Market Insights - The global AI market is projected to reach $3 trillion by 2033, driven by the demand for AI infrastructure and the rapid adoption of AI technologies. ChatGPT has seen a surge in active users, growing from 200 million to over 1 billion in just two years [16][17]. - AI stocks have outperformed traditional sectors, with chipmakers and technology firms leading the way. The demand for AI infrastructure has outpaced supply, particularly for memory chips [22][37]. Top AI Stocks for 2026 - The top 10 AI stocks identified have a forward revenue growth rate of 38% and a forward EPS growth rate of 99%, significantly outperforming the S&P 500's growth rates of 6% and 10.6% respectively [39]. - The stocks were selected from major AI-focused ETFs and analyzed using a quantitative model to identify strong performers based on various metrics [36][37]. Individual Stock Highlights - **Lumentum Holdings (LITE)**: Market cap of $27 billion, ranked 1st in its sector. The stock has increased by 402% over the past year, with strong growth metrics [41][43]. - **Micron Technology (MU)**: Market cap of $466 billion, ranked 1st in the semiconductor industry. The stock is up 387% over the past year, with a forward EPS growth rate of 222% [46][52]. - **Ciena (CIEN)**: Market cap of $35 billion, ranked 2nd in communications equipment. The company has a long-term growth rate of 44% [54][55]. - **General Motors (GM)**: Market cap of $1.46 trillion, recognized for its integration of AI in automotive technology. The stock is up 76% over the past year [57][59]. - **Taiwan Semiconductor (TSM)**: Market cap of $1.46 trillion, ranked 2nd in semiconductors. The company has a long-term EPS growth rate of 30% [60][61]. - **Hut 8 Corp (HUT)**: Market cap of $6 billion, ranked 1st in application software. The stock has returned 160% over the past year [62][63]. - **Celestica (CLS)**: Market cap of $32 billion, ranked 2nd in electronic manufacturing services. The stock is up 136% over the past year [64][66]. - **Credo Technology Holding (CRDO)**: Ranked 4th in semiconductors, with a long-term EPS growth rate of 69% [70][71]. - **AppLovin Corporation (APP)**: Despite a rocky year, the stock is up 31% and has strong growth metrics [72][74]. - **Globus Medical (GMED)**: Market cap of $12 billion, focused on AI and robotics in healthcare. The stock is up 68% over the past six months [78][80].

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of Celestica Inc. regarding potential securities fraud or unlawful business practices by the company and its officers or directors [1] - On January 22, 2026, news from Digitimes indicated that Alphabet Inc.'s Google may shift assembly work for its tensor processing units to other suppliers, which could reduce Celestica's role in assembling Google's AI servers [3] - Following the news about Google's potential shift, Celestica's stock price dropped by $18.83 per share, or 6.08%, closing at $290.92 per share on January 22, 2026 [3]

Core Viewpoint - The article emphasizes the importance of building a balanced investment portfolio that includes both technology stocks and defensive options, highlighting the intrinsic value of companies as a key focus for investment decisions [1] Group 1: Investment Strategy - The company specializes in equities and diversified portfolios, aiming to ensure clients benefit from technology stock growth while maintaining investments in defensive options [1] - There is a strong preference for established technology companies and those in consumer staples and discretionary goods, prioritizing company value over market circumstances [1] Group 2: Experience and Expertise - The company has been an active investor for seven years, managing third-party portfolios and focusing on macroeconomic trends, stock valuation, and the interplay between politics and markets [1] - A Master's degree in Economics and experience as a consultant for public and private organizations contribute to the company's analytical capabilities, particularly in financial and economic aspects [1] Group 3: Challenges and Insights - The company acknowledges the difficulty of the investment principle "buying low and selling high," drawing parallels between the pressures of public tenders and market crises experienced in 2020 and 2022 [1] - The company actively promotes financial inclusion programs for women in finance, recognizing the ongoing challenges in this area and expressing a commitment to contribute positively [1]

Core Insights - Celestica Inc. (CLS) reported strong Q4 2025 earnings with adjusted EPS of $1.89, exceeding the Zacks Consensus Estimate of $1.74 and the previous year's EPS of $1.11. Quarterly revenues reached $3.65 billion, surpassing the Zacks Consensus Estimate of $3.46 billion and showing a 44% year-over-year increase [1][9]. Financial Performance - The Connectivity & Cloud Solutions (CCS) segment saw a 64% year-over-year revenue increase, contributing 78.3% to total revenues in Q4. In contrast, the Advanced Technology Solutions segment experienced a 1% decline in revenues year-over-year [2][9]. - For Q1 2026, Celestica anticipates revenues between $3.85 billion and $4.15 billion, with non-GAAP EPS projected to be in the range of $1.95 to $2.15. The non-GAAP operating margin is expected to be around 7.8% [8][10]. Market Trends and Demand - The demand in the CCS segment is driven by strong performance in the communications market, particularly in the Hyperscaler Portfolio Solutions networking business and optical programs, with increasing demand for 800G and 400G network switches [4][7]. - The rise of AI applications and generative AI tools is boosting investments in AI across the technology sector, leading to increased demand for Celestica's data communications and processing infrastructure products [5][7]. Product Innovation - Celestica launched the SD6300 ultra-dense storage expansion system to address the growing AI data needs in enterprise and hyperscale data centers, optimizing space utilization within standard racks [6]. Growth Outlook - Celestica's 2026 revenue target has been raised to approximately $17 billion, up from a previous estimate of $16 billion. Non-GAAP EPS is now expected to be $8.75, an increase from the prior estimate of $8.20 per share [10]. - The company has an expected revenue growth rate of 29.2% and an earnings growth rate of 36.9% for the current year, with improvements in the Zacks Consensus Estimate for earnings over the past week [11]. Industry Position - The Electronics - Manufacturing Services industry, where Celestica operates, is currently ranked in the top 7% of the Zacks Industry Rank, with a remarkable 101% return over the past year and a year-to-date return of 78.6% [16]. - Celestica's innovative product portfolio and strong market presence in the AI data center market position it as a favorable investment opportunity [17].

分组1 - The article discusses Celestica Inc. (NYSE: CLS) and its strong performance in the AI sector, highlighting its double beat and raise performances [1] - The management of Celestica provided an outsized preliminary guidance for FY2026, indicating confidence in future growth [1] 分组2 - The analyst expresses a beneficial long position in shares of major tech companies, including GOOG, AMZN, CRWV, and META, suggesting a positive outlook on these stocks [2] - The article emphasizes the importance of conducting personal in-depth research before making investment decisions, acknowledging the inherent risks involved [3]