Celestica May Be One Of The Cleanest AI Infrastructure Plays Left
2026-05-28 09:05:00 ET
Investment Thesis
The investment thesis for Celestica ( CLS ) has evolved from "a dirty 'picks-and-shovels' way to buy exposure to the AI infrastructure cycle" to "one of the cleanest 'picks-and-shovels' ways to buy exposure to the AI infrastructure cycle." The old bear case centered around its status as a contract manufacturing business; CLS had cyclicality in revenue, a high degree of customer concentration, and narrow margin characteristics. The new bull case is stronger. Celestica is transitioning to be a co-designer , manufacturer, platform supplier, and supply chain partner for hyperscaler AI data center deployments. This transition is occurring precisely as networking becomes one of the largest bottleneck areas in AI cluster performance....
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Celestica May Be One Of The Cleanest AI Infrastructure Plays Left
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