We recently published 10 Best Strong Buy AI Stocks to Invest In. Celestica Inc. (NYSE:CLS) is one of the best consumer cyclical stocks.
Celestica Inc. (NYSE:CLS) is a technology company that provides contract manufacturing and other services. It factors into the AI ecosystem by providing infrastructure and other solutions that enable data center buildouts.
Investment bank Barclays kept an Overweight rating on Celestica Inc. (NYSE:CLS)’s shares on November 14th and increased the share price target to $359 from $357, The Fly reported. The share price target boost came after Citi upgraded the stock to Buy from Hold and kept its share price target at $375. Citi’s coverage came as the bank remarked that it expected hyperscaler capital expenditure to grow by more than 40% in 2026 after growing by 75% in 2025.
The upgrades came soon after Celestica Inc. (NYSE:CLS) had reported its third-quarter earnings on October 27th. The results saw the firm’s $3.19 billion in revenue and $1.58 in adjusted EPS beat analyst estimates of $3.04 billion and $1.49. Celestica Inc. (NYSE:CLS)’s shares gained as much as 10% after the results were announced, and management attributed the performance to a strong demand environment that also let the firm increase its full-year revenue guide to $12.2 billion from an earlier $11.55 billion.
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During Celestica Inc. (NYSE:CLS)’s third-quarter earnings call, management discussed its insight into the strong demand environment after a question from BNP Paribas’ Karl Ackerman:
“With regard to visibility to forecast and customer demand, we currently have about 12 to 15 months of real solid forecast inputs and demand inputs from our customers, largely around their 2026 budgeting and spend commit processes. But in many cases, we have visibility beyond that. In some cases, for specific customers, specific programs. There’s a certain amount of ASICs, for example, that they may have committed to, and it gives us some assurance as to the longevity and the size of the overall program. So we do get extended visibility through being similar to that.”
While we acknowledge the potential of CLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
