20 AI News and Analyst Ratings You Should Not Miss

13. Celestica Inc. (NYSE:CLS)

Number of Hedge Fund Holders: 38 

Celestica Inc. (NYSE:CLS) offers a range of product manufacturing and related supply chain services. The company is involved in the manufacture and marketing of connectivity products for AI data centers, which include 400G and 800G switches, and storage solutions. In the second quarter earnings call, Rob Mionis, the CEO of Celestica Inc. (NYSE:CLS), noted that there was strong demand for the Hardware Platform Solutions marketed by the firm, comprising storage, compute, and networking products. This healthy demand, likely to increase in the coming months as hyperscalers invest in AI data centers, had helped the firm post a more than 50% year-to-year increase in connectivity revenues in the second quarter.

Celestica Inc. (NYSE:CLS) recently earned a ratings upgrade from Stifel, which boosted the stock to Buy from Hold with an unchanged price target of $58. In an investor note, Stifel analysts noted that the shares of the manufacturing firm were down since July because of concerns of slowing artificial intelligence investments from hyperscale customers following key supplier earnings reports. However, the note added that the fiscal 2025 earnings per share estimate of $4 remained entirely achievable and already reflected an expected decline in server sales due to a technology transition at top customer Google.