15 AI News Investors Should Not Miss

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12. Celestica Inc. (NYSE:CLS)

Number of Hedge Fund Holders: 38

Celestica Inc. (NYSE:CLS) is an American-Canadian multinational company that designs, manufactures, and offers supply chain solutions across many industries. With hyperscalers continuing to invest in artificial intelligence infrastructure investments, Celestica Inc. (NYSE:CLS) is benefiting from the AI cycle through its connectivity and cloud solutions portfolio.

On October 24, RBC Capital raised the firm’s price target on Celestica to $75 from $65 and kept an “Outperform” rating on the shares. The accelerated business momentum for Celestica is being driven by AI-related strength. The company posted a beat-and-raise third-quarter earnings report. Its Connectivity and Clouds Solutions (CCS) segment saw a 42% year-over-year revenue increase, driven by the strong demand from hyperscale customers. The firm also announced two significant wins, including its partnership with Groq to supply AI servers and a 1.6T switching contract with a major hyperscaler Other analysts have also raised their price targets on the company’s shares after the report.

“Celestica is seeing increasing traction at hyperscalers and a mix shift to higher-margin programs,” Treiber said in a client note.

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