Company Spotlight: The Manufacturing Challenge Behind the AI Revolution
While companies like NVIDIA and AMD capture headlines for their AI chips, a critical challenge remains: Who will actually build the complex infrastructure needed to power the AI revolution? Enter Celestica (CLS), one of tech’s most crucial manufacturers. The company’s stock has outperformed NVIDIA by a significant margin year-over-year, delivering returns of over 320% compared to NVIDIA’s 140% gain. This exceptional performance earned Celestica second place on the 2024 TSX30, Toronto Stock Exchange’s flagship program. TSX30 recognizes the top 30 performers based on three-year dividend-adjusted share price returns.
Founded in 1994 as IBM Canada’s manufacturing arm, Celestica has evolved into a global leader in design, manufacturing, and supply chain solutions across the electronics manufacturing services industry. Today, the company operates 50 sites across 15 countries, serving diverse sectors, including healthtech, industrial, capital equipment, AI, and energy. With a mission to deliver comprehensive solutions across the entire product lifecycle, Celestica has positioned itself as a critical enabler of next-generation technology infrastructure. In Q2 2024, the company was added to the ROBO Global Robotics and Automation Index (ROBO).
Celestica’s expertise spans cutting-edge manufacturing, electro-mechanical design, and assembly, making it a trusted partner for complex challenges. The company’s Robotics Center of Excellence (COE) highlights its leadership in automation, enabling robotics companies to streamline design, optimize production, and scale efficiently. These capabilities extend to capital equipment and industrial automation, where Celestica delivers innovative solutions tailored to high-growth, technology-driven markets.
AI Infrastructure Leadership
The company has also capitalized on the accelerating demand for AI-driven infrastructure. Recent partnerships with Groq AI and a major hyperscaler for AI/ML server manufacturing demonstrate its ability to deliver advanced, customized solutions. Celestica’s proprietary designs, such as modular AI/ML compute platforms and advanced cooling systems, position it as a key player in the rapidly growing AI server market, projected to exceed $250 billion by 2027. Additionally, Celestica’s leadership in Ethernet switching technology — dominating the 400G segment and leading the transition to 800G — underscores its role in supporting next-generation data centers.
In Q3, Celestica achieved revenue of $2.5 billion, up 22% year-over-year, driven by a 42% surge in its connectivity & cloud solutions (CCS) segment. Its adjusted EPS of $1.04 marked a 39% improvement, reflecting strong operational execution and demand across key markets. Furthermore, the company provided promising guidance for 2025, signaling sustained growth.
Celestica’s commitment to innovation, strategic partnerships, and customer-centric solutions continues to drive its success. Whether enabling robotics advancements, powering AI infrastructure, or providing best-in-class supply chain solutions, Celestica is uniquely positioned to thrive in dynamic, fast-evolving industries. By blending its expertise with a global footprint, the company is set to capitalize on emerging opportunities and maintain its status as a leader in design and manufacturing solutions.
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