Celestica

My thoughts on beaten down AI Picks and shovels. $Bloom Energy(BE.US) $Eaton(ETN.US) $GE Vernova(GEV.US) $Comfort Systems USA(FIX.US) $Celestica(CLS.US) $Sterling Infrastructure(STRL.US). Each one has its own level. Not one setup for all of them.

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📢 𝗝𝗨𝗦𝗧 𝗜𝗡: $Celestica(CLS.US) Celestica Announces $𝟯 𝗕𝗶𝗹𝗹𝗶𝗼𝗻 Common Share Offering

👉 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

➤ 𝗖𝗲𝗹𝗲𝘀𝘁𝗶𝗰𝗮 launches a $𝟯 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 treasury offering of common shares.

➤ Proceeds will support 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝗰𝗮𝗽𝗶𝘁𝗮𝗹, capital expenditures, and corporate purposes.

➤ Underwriters have a 𝟯𝟬-𝗱𝗮𝘆 option to purchase up to 𝟭𝟱% additional shares.

➤ 𝗕𝗼𝗳𝗔 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 and 𝗖𝗶𝘁𝗶𝗴𝗿𝗼𝘂𝗽 are joint lead bookrunners.

➤ 𝗧𝗗 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 is serving as bookrunner.

➤ Closing remains subject to customary conditions and regulatory approvals.

➤ New shares are expected to be listed on the 𝗡𝗬𝗦𝗘 and 𝗧𝗦𝗫.

➤ Capital raise aims to support growth alongside rising customer demand.

➤ Celestica continues expanding its AI data center infrastructure business.

👉 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀:

➤ Strengthens Celestica's balance sheet to fund future AI infrastructure growth.

➤ Provides financial flexibility to support increasing customer demand.

➤ Reflects management's confidence in sustained multi-year business momentum.

➤ Additional shares may dilute existing shareholders but increase growth capital.

👉 𝗘𝘅𝗽𝗲𝗿𝘁 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀:

𝗠𝗮𝗻𝗱𝗲𝗲𝗽 𝗖𝗵𝗮𝘄𝗹𝗮, Chief Financial Officer of Celestica:

"Maintaining a robust capital structure with enhanced balance sheet flexibility is central to executing our long-term strategy."

𝗥𝗼𝗯 𝗠𝗶𝗼𝗻𝗶𝘀, Chief Executive Officer of Celestica:

"Our demand outlook is the strongest in the Company's history, and our multi-year visibility continues to strengthen."

$Celestica(CLS.US) is my favorite AI name, I said the same many times before. $GE Vernova(GEV.US) gets second spot.

Let's look at Celesticas numbers.

- Fun fact: Never missed ER since Oct 2019.

- Rev $4.70B (+62%), blew past the $4.15–4.45 guide.

- Adj EPS $2.54 vs $2.14–2.34 guide.

- Margin hit a company high at 8.2%.

- Then they raised the year again: FY rev to $20.5B, adj EPS to $11.30. Stock went decently up.

Why I think it spiked? Simple beat and raise into a story people already believe. Data center / AI compute demand, better component supply, and management hiking the year for a reason. No messy excuses, Just execution.

What to expect? Near term it stays a leader in the AI supply chain tape. What we're in is a consolidation zone. Whenever the next AI leg up, this should be leading.

📊 Watchlist for tomorrow (Not Financial Advice)

$Celestica(CLS.US) $Cadence Design(CDNS.US) $Enova(ENVA.US) $SAP AG-Sponsored(SAP.US) $ServiceNow(NOW.US) $AAR(AIR.US) $FirstCash(FCFS.US) $Goosehead Insurance(GSHD.US) $General Motors(GM.US) $Precigen(PGEN.US)

📌 See pinned tweet for how I use my WL

Amazing commentary from Celestica $Celestica(CLS.US):

"Driven by very strong customer demand, and supported by new program wins, we expect revenue growth in 2027 to accelerate beyond the 65% growth rate we are anticipating in 2026."

Bonkers! Will listen to the conference call and give more info but amazing growth numbers.

$Celestica(CLS.US) Q2 Earnings Double Beat 🔥

Adj. EPS: $2.54 vs $2.30 est

Sales: $4.699B vs $4.389B est

🟩 +6.50%

BofA: Switching Trends

Data Center (DC) Switching (66% of Market)

Data center switching remains the largest segment and grew 50% YoY in 1Q26, driven heavily by cloud deployments:

> AI Back-End Switching: Grew 121% YoY, now accounting for ~38% of the DC switching market compared to 26% a year ago.

> Front-End Switching: Grew 25.6% YoY, accelerating from 11.8% growth in 1Q25.

> Vendor Standings: In the aggregate DC market, Arista leads with a 21.1% market share, followed by Cisco at 17.8% and Celestica at 13.2%.

Key Vendor & Customer Segment Shifts

> Cisco’s AI Back-End Breakthrough: Cisco expanded its AI back-end DC switching market share from zero last year to 7.9% in 1Q26. Specifically within the Hyperscaler back-end segment, Cisco jumped to 13.2% (matching Arista and Nvidia), largely due to penetration into Meta's 800G leaf switch layer.

> AI Back-End Leaders: White-box manufacturer Celestica remains the largest player in AI back-end switching with a 26.3% share, followed by Nvidia at 24.5% and Arista at 12.1%.

> Nvidia Dominates Tier-2 AI: Nvidia commands a massive 57.2% share of the Tier-2/Neo Cloud AI back-end market, demonstrating a strong full reference design value proposition.

> Arista's Tier-2 Front-End Strength: Arista holds 32.0% of the Tier-2 Front-End market, closely chased by Cisco at 21.6%.

Campus Switching (34% of Market)

> Steady Improvement: The segment grew 15.1% YoY in 1Q26, consistently tracking at a 9%+ growth baseline compared to historical averages of 1–2%. Growth is primarily driven by enterprise product refreshes.

> Cisco Dominance: Cisco heavily leads the Campus market with a 53.5% share. Analysts expect Cisco to gain further share over the coming quarters as its Catalyst 4000 series (2026) and Catalyst 6000 series (late 2027) reach End-of-Service (EOS), triggering mandatory client refreshes.

$Cisco(CSCO.US) $NVIDIA(NVDA.US) $Arista Networks(ANET.US) $Celestica(CLS.US)

Some AI stocks that are worth buying every dip to 50ma.

$NVIDIA(NVDA.US) - Duh!

$Micron Tech(MU.US)

$Broadcom(AVGO.US)

$Microsoft(MSFT.US) - Duh!

$Celestica(CLS.US)

$Dell Tech(DELL.US)

$Cisco(CSCO.US)

$GE Vernova(GEV.US) - My fav of the list.

Some stocks with the area of interest I am watching closely.

- $Broadcom(AVGO.US) at 398(50ma), we are below it.

- $Celestica(CLS.US) at 50ma, 371.

- $Micron Tech(MU.US) at 815

- $NVIDIA(NVDA.US) 207-203

- $Alphabet(GOOGL.US) 370

- $Snowflake(SNOW.US) 240

- $Marvell Tech(MRVL.US) 220

- $Bloom Energy(BE.US) 265(now)

All are purely based on technical levels.

$Celestica(CLS.US) is just waiting in the queue on the runway. We're just waiting for all the $Dell Tech(DELL.US)'s, $Bloom Energy(BE.US)'s and $Lumentum(LITE.US)'s to be done with their run. Once the clearance comes from ATC this will take off, nice & easy.

PT: 450+