10 Best AI Data Center Stocks to Buy Now

3. Celestica Inc. (NYSE:CLS)

Upside Potential: 42.35%

Number of Hedge Fund Holders: 62

BofA started coverage of Celestica Inc. (NYSE:CLS) on January 28, 2026, with a buy rating and $400 price target. Celestica, a leading provider of white-box switches, will benefit from a solid development in custom ASIC-accelerated servers and an AI-driven upgrade boom for high-speed data center switches. Hence, FY27 is expected to be a strong year, driven by continued gains in market share and the launch of multiple new programs.

Furthermore, in response to a DigiTimes report stating that Inventec will play a bigger part in Google’s (GOOGL) TPU manufacturing, RBC Capital reaffirmed its ‘Outperform’ rating and $400 price target for Celestica Inc. (NYSE:CLS). However, following this report, Celestica shares fell on the view that Inventec plans to considerably increase its AI server production capacity in 2026.

Yet this drop was seen as an overreaction by RBC Capital as Celestica Inc. (NYSE:CLS) successfully maintains the bulk of TPU assembly volumes to date amid increased production yields. The company is projected to be well-positioned to continue benefiting from strong hyperscaler demand momentum through 2027, despite the fact that competition and share shifts are always concerns that could undermine Celestica’s future growth trajectory.

Celestica Inc. (NYSE:CLS), founded in 1994 and headquartered in Toronto, Canada, delivers supply chain solutions worldwide to equipment manufacturers and service providers.