12 AI Updates Worth Taking a Look At

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5. Celestica Inc. (NYSE:CLS)

Number of Hedge Fund Holders: 44

Celestica Inc. (NYSE:CLS) provides supply chain solutions, manufacturing, and hardware platform services across various industries in North America, Europe, and Asia.

On February 21, JPMorgan initiated coverage on Celestica with an Overweight rating and a $166 price target for December 2025. The firm sees the company benefiting from AI infrastructure investments, particularly in custom ASIC servers and white box switches, due to its strong ties with major hyperscalers. Celestica’s higher R&D spending, around 1% of revenue compared to peers below 0.5%, is expected to drive revenue growth in higher-margin businesses within its HPS portfolio. The shift could lead to a valuation re-rating as investors recognize the potential for stronger earnings beyond the medium-term growth outlook.

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