During the August 4 episode of CNBC’s Mad Money, a caller inquired about Celestica Inc. (NYSE:CLS), pointed out that 18 out of 19 Wall Street analysts covering the company maintain a Buy or Strong Buy rating, and noted that Celestica shares had slipped roughly 20% to 25% below their 52-week peak. Host Jim Cramer replied:
Dave (the caller) is a wise man to bring me this. Now look, here’s what I do. I read the Celestica conference call every single time. They are incredible at what they do. I think it is a buy. I suggest that people say, “You know what? It’s up 29. It’s probably going to be too much.” I say, “Buy some and then hope it comes down.”
Cramer’s approach allows long-term investors to gain immediate exposure to Celestica’s enterprise technology capabilities while buffering against broader market volatility.
Blowout Second Quarter Triggers Raised Full-Year Outlook
Supporting Cramer’s positive stance, Celestica recently delivered a strong second-quarter financial performance. The company posted non-GAAP earnings per share of $2.54, topping Wall Street expectations by $0.23. Total quarterly revenue surged 62.6% year-over-year to $4.70 billion, exceeding analyst estimates by $310 million.
Following the record quarter, management significantly upgraded its full-year 2026 financial outlook. Full-year revenue guidance was raised to $20.5 billion, surpassing the Wall Street consensus and up from the prior $19.0 billion forecast. Adjusted earnings per share were increased to $11.30, up from the prior target of $10.15. Non-GAAP operating margin targets expanded to 8.4% from 8.1%, while full-year free cash flow projections were boosted to $600 million from the previous $500 million estimate. Moreover, rapid expansion in custom rack design, high-speed networking programs, and custom AI infrastructure deployments for major cloud hyperscalers continues to drive top-line momentum.
Institutional Capital Flows and Low Bearish Pressure
It is worth noting that institutional tracking indicates a minor shift in hedge fund participation alongside subdued short-selling activity. According to Insider Monkey’s data, the count of elite hedge funds holding a stake in the stock stood at 67 in the first quarter of 2026, representing a small decline from 71 funds in the fourth quarter of 2025. Arrowstreet Capital remained the most significant hedge fund shareholder of the company despite decreasing its position in the stock by 31% in Q1.
Despite that slight decrease in fund ownership, short interest remains very low at 2.65% of the total float. The limited short bets show that institutional traders are generally avoiding bearish bets against Celestica, recognizing the company’s strong position in supplying important infrastructure for global AI data center expansion.
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 this cheapest AI stock.
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