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.
๐งต7.7705.30% ( -0.435 )
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๐ข ๐๐จ๐ฆ๐ง ๐๐ก: $Celestica(CLS.US) Celestica Announces $๐ฏ ๐๐ถ๐น๐น๐ถ๐ผ๐ป Common Share Offering
๐ ๐๐ฒ๐ ๐๐ถ๐ด๐ต๐น๐ถ๐ด๐ต๐๐:โค ๐๐ฒ๐น๐ฒ๐๐๐ถ๐ฐ๐ฎ launches a $๐ฏ ๐ฏ๐ถ๐น๐น๐ถ๐ผ๐ป treasury offering of common shares.โค Proceeds will support ๐๐ผ๐ฟ๐ธ๐ถ๐ป๐ด ๐ฐ๐ฎ๐ฝ๐ถ๐๐ฎ๐น, capital expenditures, and corporate purposes.โค Underwriters have a ๐ฏ๐ฌ-๐ฑ๐ฎ๐ option to purchase up to ๐ญ๐ฑ% additional shares.โค ๐๐ผ๐ณ๐ ๐ฆ๐ฒ๐ฐ๐๐ฟ๐ถ๐๐ถ๐ฒ๐ and ๐๐ถ๐๐ถ๐ด๐ฟ๐ผ๐๐ฝ are joint lead bookrunners.โค ๐ง๐ ๐ฆ๐ฒ๐ฐ๐๐ฟ๐ถ๐๐ถ๐ฒ๐ is serving as bookrunner.โค Closing remains subject to customary conditions and regulatory approvals.โค New shares are expected to be listed on the ๐ก๐ฌ๐ฆ๐ and ๐ง๐ฆ๐ซ.โค Capital raise aims to support growth alongside rising customer demand.โค Celestica continues expanding its AI data center infrastructure business.๐ ๐ช๐ต๐ ๐ง๐ต๐ถ๐ ๐ ๐ฎ๐๐๐ฒ๐ฟ๐:โค Strengthens Celestica's balance sheet to fund future AI infrastructure growth.โค Provides financial flexibility to support increasing customer demand.โค Reflects management's confidence in sustained multi-year business momentum.โค Additional shares may dilute existing shareholders but increase growth capital.๐ ๐๐ ๐ฝ๐ฒ๐ฟ๐ ๐ฆ๐๐ฎ๐๐ฒ๐บ๐ฒ๐ป๐๐:๐ ๐ฎ๐ป๐ฑ๐ฒ๐ฒ๐ฝ ๐๐ต๐ฎ๐๐น๐ฎ, Chief Financial Officer of Celestica:"Maintaining a robust capital structure with enhanced balance sheet flexibility is central to executing our long-term strategy."๐ฅ๐ผ๐ฏ ๐ ๐ถ๐ผ๐ป๐ถ๐, Chief Executive Officer of Celestica:"Our demand outlook is the strongest in the Company's history, and our multi-year visibility continues to strengthen." - F
$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 $4.15โ4.45 guide. - Adj EPS $2.54 vs $2.14โ2.34 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. - M
๐ 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)๐ See pinned tweet for how I use my WL - E
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. - W
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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> Ciscoโs 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 1โ2%. 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) - F
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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. - F
