Celestica (CLS) is Benefitting from Investments in AI Infrastructure

Renaissance Investment Management, an investment management company, released its Q4 2024 “International Small Cap Strategy” investor letter. A copy of the letter can be downloaded here. In 2024, international equities experienced a second consecutive year of growth but underperformed their U.S. counterparts due to weak economic growth, political turmoil, tariff threats, and a strong U.S. dollar. The portfolio generated negative returns in the fourth quarter but outperformed the benchmark. For more information on the fund’s best picks in 2024, please check its top five holdings.

In its fourth quarter 2024 investor letter, Renaissance International Small Cap Strategy emphasized stocks such as Celestica Inc. (NYSE:CLS). Celestica Inc. (NYSE:CLS) is a supply chain solutions provider. The one-month return Celestica Inc. (NYSE:CLS) was -6.46%, and its shares gained 58.82% of their value over the last 52 weeks. On April 2, 2025, Celestica Inc. (NYSE:CLS) stock closed at $82.35 per share with a market capitalization of $9.567 billion.

Renaissance International Small Cap Strategy stated the following regarding Celestica Inc. (NYSE:CLS) in its Q4 2024 investor letter:

“The top contributor to our portfolio performance during the quarter was Celestica Inc. (NYSE:CLS) (Canada), as the provider of electronic manufacturing services benefits from ongoing investments in AI infrastructure and high-bandwidth networking solutions. Celestica is well positioned to capitalize on emerging opportunities in next-generation data centers and networking technologies.”

Celestica Inc. (CLS): Among Stocks Insiders Were Selling In Q1 2025

A close-up of a circuit board with components depicting the intricate electronic componentry products the company produces.

Celestica Inc. (NYSE:CLS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Celestica Inc. (NYSE:CLS) at the end of the fourth quarter which was 40 in the previous quarter. While we acknowledge the potential of Celestica Inc. (NYSE:CLS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We covered Celestica Inc. (NYSE:CLS) in another article, where we shared the list of stocks that outperform the broader market. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.