Let’s be honest—when you think of tech stocks with explosive upside, you’re probably not thinking about Celestica Inc. (CLS). In fact, unless you’ve been reading the fine print of earnings reports or quietly following the contract manufacturing sector, you might’ve missed Celestica entirely. That would be a mistake. A big one. Because while the world drools over the Magnificent 7, Celestica is quietly building an empire in the shadows—an AI-fueled, supply chain-optimized, defense-backed empire with actual profits and real traction.
So let’s pop the hood on this Toronto-based tech enabler and take a snarky, no-hype, reality-based look at why Celestica still has a lot more to offer, even after its jaw-dropping 2023 and 2024.
Wait, What Exactly Does Celestica Do Again?
Good question. Celestica isn’t a household name because they’re not consumer-facing. You won’t see their logo on your laptop or your favorite app. But behind many of the most cutting-edge technologies—cloud computing, defense systems, AI infrastructure, advanced healthcare devices—is Celestica’s manufacturing magic.
Think of them as the stagehands of the tech world. You know, the people who make sure the lights don’t fall on Beyoncé during the concert? That’s Celestica, but for hyperscalers and aerospace giants.
They provide complex hardware solutions for sectors like:
-
High-Performance Computing (HPC)
-
Artificial Intelligence Infrastructure
-
Aerospace and Defense
-
Healthcare Tech
-
Sustainable Industrial Systems
They don’t just build things. They build very hard things—and they do it on time, within budget, and at a level of precision that gives Pentagon generals and cloud architects alike warm fuzzies.
2023 Was the Warm-Up. 2024 Was the First Lap. 2025 Might Be the Sprint.
Let’s talk performance. In 2023, CLS shares soared more than 100%. In 2024, they outpaced the market again with another double-digit return. At this point, most investors would say, “Well, the easy money’s been made.”
Wrong. It’s just getting interesting.
Here’s why:
-
Celestica's Q2 2024 earnings crushed estimates: Revenue up, margins up, backlog up. What more do you want?
-
AI Infrastructure demand is just beginning: Everyone’s focused on Nvidia’s chips. But those chips need homes—rack servers, storage modules, thermal management systems. Guess who builds those? Celestica.
-
Defense spending globally is soaring: The geopolitical climate is spicy. NATO countries are increasing budgets. Celestica is a tier-one supplier for defense electronics. Do the math.
-
Healthcare innovation is ramping up: From robotic surgery to diagnostic imaging, medical OEMs need partners who can handle high-stakes precision. Celestica’s HealthTech segment is lean, profitable, and growing.
AI Is Eating the World—And Celestica Is Building the Kitchen
We need to get very real about the AI craze. Everyone’s talking about LLMs, chips, training clusters—but all of that runs on physical infrastructure. You can’t “prompt” a GPT model into existence without racks, power, cooling, and custom integration.
Celestica isn’t selling the sizzle. They’re selling the grill. While Nvidia gets the spotlight (deservedly), Celestica is turning that spotlight into a revenue stream by supplying the hardware that enables deployment at scale.
Their enterprise customers are building out AI data centers in record time—and CLS has positioned itself as a key design and manufacturing partner. More interestingly, they’re doing it profitably. Their AI server business is growing triple digits year-over-year with no sign of slowing down.
This is a picks-and-shovels play. And Celestica has quietly become one of the best shovel vendors in the game.
Supply Chain Wizardry: How Celestica Turned a Global Headache Into a Competitive Moat
One of the reasons many tech companies got their clocks cleaned during the pandemic was their brittle supply chains. Not Celestica. In fact, they gained market share during the chaos.
Why?
Because Celestica has:
-
Global manufacturing scale
-
Deep vertical integration
-
End-to-end supply chain visibility
-
A culture of operational excellence (read: obsession)
When your competitors are scrambling for chips and parts, and you’re shipping ahead of schedule, customers notice. That’s exactly what happened in 2021–2023. And now, Celestica’s ability to not screw up has become a calling card.
In a world where just-in-time has become just-in-panic, stability is sexy. Celestica is stable. And profitable. And increasingly irreplaceable to its customers.
Valuation Still Isn’t Crazy. Yes, Really.
Here’s where things get spicy for the value crowd.
Even after its recent run, Celestica trades at around 14–15x forward earnings. That’s… not expensive. Not in this market. Not for a company with:
-
Strong double-digit revenue growth
-
Expanding margins
-
Significant exposure to secular megatrends
-
Free cash flow to fund buybacks and M&A
Compare that to Nvidia (which, again, deserves praise), trading at 35–40x forward earnings. Or look at hardware peers like Flex or Jabil. Celestica is no longer the cheapest in the space, but it’s nowhere near priced for perfection.
You’re not buying hype. You’re buying a cash machine with secular tailwinds and smart leadership.
Management Is Doing Everything Right (And Then Some)
Let’s give credit where it’s due. CEO Rob Mionis has been executing flawlessly. Under his leadership, Celestica has:
-
Exited low-margin businesses
-
Focused on high-value verticals
-
Improved working capital discipline
-
Accelerated strategic investments
-
Returned capital to shareholders
It’s like watching a B-level actor quietly win Oscars while the Marvel Universe hogs all the attention. If this were Silicon Valley, Mionis would be hailed as a visionary. But because he’s running a boring-sounding Canadian manufacturing company, no one’s paying attention.
Which is exactly why you should.
Risks? Sure. But Nothing Existential.
Let’s not pretend Celestica is bulletproof. Every investment has risks. Here’s a sober look at the key ones:
-
Customer concentration: A few big clients account for a large share of revenue. If one bolts, that hurts.
-
Cyclical exposure: Industrial and aerospace clients can delay orders in downturns.
-
Geopolitical risk: Operating in China and supplying defense tech can create diplomatic friction.
-
Execution risk: Scaling AI infrastructure and maintaining margins isn’t easy.
But here’s the deal: none of these are new risks. They’re known, managed, and baked into Celestica’s DNA. This isn’t a story stock riding on vibes. It’s a company with operational chops and a proven playbook.
Catalysts That Could Ignite the Next Leg Up
If you’re wondering what could push Celestica even higher, consider the following:
-
AI Infrastructure Orders Accelerating – If hyperscalers double down, expect CLS revenue to spike.
-
New Contract Wins in Defense – The U.S., EU, and Canada are all boosting military spend.
-
Acquisitions – Celestica has the cash and discipline to do smart bolt-ons.
-
Index Inclusion – A Nasdaq or S&P bump could bring in passive flows.
-
Buybacks – Management has been steadily buying shares and has room to accelerate.
The Bottom Line: This Isn’t a Meme Stock. This Is a Monster in the Making.
In a market dominated by noisy stocks and dumb narratives, Celestica stands out by not standing out. It just works. It just delivers. It just wins. And most investors still haven’t noticed.
It doesn’t make headlines. It makes money. That’s rare in today’s dopamine-driven market.
So if you’re the kind of investor who likes:
-
Real growth
-
Real profits
-
Reasonable multiples
-
Emerging tailwinds
-
Boring companies doing brilliant things…
…then Celestica still has a lot more to offer. It’s not the flashiest stock in your portfolio—but it might end up being the smartest.
Disclaimer: This blog is not financial advice. Do your own due diligence. Or don’t—and miss the next industrial tech juggernaut. Your choice.