20 Trending AI Stocks on Latest News and Analyst Ratings

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.

Stifel recently upgraded Celestica Inc. (NYSE:CLS) to Buy from Hold. In an investor note, the analysts from the advisory noted that the firm could achieve the FY25 EPS estimate of $4 despite an expected decline in server sales due to a technology transition at a top customer. The analysts added that the expected decline would be more than offset by growth in the communications segment of the firm, with the expected 800-G switch investment cycle. In the note, Stifel underlined that the selloff concerns were primarily due to worries of slowing AI investments from hyperscale customers after the earnings reports of key suppliers.