Celestica (CLS) Plunges 14% After All-Time High — Here’s What Dragged Sentiment

Celestica Inc. (NYSE:CLS) is one of the 10 Stocks Reeling From Huge Losses.

Celestica saw its share prices nosedive by 14.37 percent on Tuesday to finish at $361.54 apiece, as investors resorted to profit-taking after soaring to an all-time high, while “selling on news” after a strong earnings performance.

On Monday alone, Celestica Inc. (NYSE:CLS) soared to its highest price of $423.25—primarily driven by strong investor confidence for the company amid the booming AI—pushing investors to “sell on news”—an investor strategy where shares of companies are sold immediately after the release of positive news, as expected gains were already priced in the previous trading days.

Morgan Stanley Downgrades Himax Tech (HIMX) from Overweight to Equal Weight

Photo from Celestica website

Additionally, Celestica Inc. (NYSE:CLS) has already seen its share price climb by as much as 50 percent heading into month-end.

On Tuesday, the company said that it more-than-doubled its net earnings in the first quarter of the year to $212.3 million from $86.2 million in the same period last year. Revenues jumped by 53 percent to $4.05 billion from $2.65 billion year-on-year.

The strong start to the year pushed Celestica Inc. (NYSE:CLS) to raise its full-year 2026 revenue outlook to $19 billion from $17 billion previously, as well as adjusted earnings per share of $10.15 versus $8.75 prior.

While we acknowledge the risk and potential of CLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CLS and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.