11 Hidden AI Stocks to Buy Right Now

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8. Celestica Inc. (NYSE:CLS)

Number of Hedge Fund Holders: 44

Celestica Inc. (NYSE:CLS) provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions and Connectivity & Cloud Solutions. The company is riding the AI wave through business in AI/ML servers, 1.6 Terabyte switches, and advanced liquid cooling systems.

On February 21, JPMorgan initiated coverage of the stock with an Overweight rating and a $166 price target. The firm believes that Celestica would benefit from AI infrastructure investments, particularly in custom ASIC servers and white box switches, due to ties with major hyperscalers. The hyperscaler data center segment within Celestica’s CCS (Cloud and Connectivity Solutions) division drove the division’s revenue to improve by 28% year-over-year in Q1 2025, which totaled $1.84 billion.

The communications end market, which largely serves these hyperscalers, saw an 87% revenue increase as well. Within the CCS segment, the demand for HPS revenue grew by 99% in Q1, reaching just over $1 billion and accounting for 39% of the company’s total revenue. This growth also came from hyperscalers’ demand for Celestica’s 400G networking switches and the ramp-up of newer 800G switch programs.

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.”

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