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RBC Capital Remains a Buy on ​Celestica (CLS)

​Celestica Inc. (NYSE:CLS) is one of the High-Flying Tech Stocks to Buy. On January 23, RBC Capital reiterated an Outperform rating on the stock with a $400 price target. Earlier, on January 20, Aletheia Capital also reiterated a Buy rating on Celestica Inc. (NYSE:CLS) and raised the price target from $330 to $410.

​Recently, on January 22, DigiTimes report stated that Inventec, one of the competitors of Celestica Inc., is expected to expand its role in Google Tensor Processing Unit manufacturing and ramp AI server production in 2026. The news caused the stock price of CLS to fall roughly 11%. Analysts at RBC Capital view the news and the market reaction to be excessive and reaffirmed that the company remains attractively placed in a high-demand market. The firm added that Celestica Inc. (NYSE:CLS) has maintained a majority of TPU assembly volumes driven by the company’s high production yields.

​The firm added that competition and potential market share shifts pose risks to Celestica’s growth. However, they see the company to be well-positioned to capitalize on the growing demand from hyperscalers into 2027.

​Similarly, Aletheia Capital noted higher average selling prices for Google’s Zebrafish modules and confirmed that it is a parallel product line to Sunfish, not a cheaper inference version. The firm expects this higher average selling price to boost the company’s enterprise revenue by roughly 30% and will also help maintain the 75% to 80% share of Google’s TPU module production.

​Celestica Inc. (NYSE:CLS) is a global electronics manufacturing services (EMS) company that is based in Canada. The company specializes in design, manufacturing, hardware platform, and supply chain solutions to deliver end-to-end product lifecycle solutions for various industries, including technology, aerospace, industrial, and healthcare.

While we acknowledge the potential of CLS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CLS and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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