Artificial intelligence (AI) infrastructure spending will likely remain robust in 2026. Market research firm Gartner predicts that global AI spending will jump 44% this year to a whopping $2.5 trillion, with AI infrastructure alone accounting for 54% of that outlay.
That forecast is why now is a good time to take a closer look at Celestica (CLS 0.21%), an AI infrastructure play whose stock soared 177% in the past year and seems poised for bigger gains in the new year. Let's look at the reasons Celestica could be one of the biggest winners of the massive AI spending in 2026.
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AI has supercharged Celestica's growth
Celestica is an electronics manufacturing company that provides design, engineering, manufacturing, and supply chain solutions to customers in various industries, such as cloud computing, communications, and aerospace and defense. The company's connectivity and cloud solutions (CCS) business received a major shot in the arm thanks to AI, which isn't surprising, as this segment serves the server and storage end markets.
Specifically, Celestica designs and builds data center networking switches to enable fast connectivity in AI data centers. These switches are in high demand from hyperscalers developing custom AI processors to run AI workloads in their data centers. The company points out that it is providing networking solutions for custom AI chip leader Broadcom and counts the likes of Marvell Technology, AMD, and Intel among its partners as well.
This impressive clientele has led to robust growth in Celestica's CCS business, with the segment's revenue jumping 43% year over year in the third quarter of 2025 to $2.4 billion. The CCS business accounts for 76% of Celestica's top line, which is why its outstanding growth is driving a jump in the company's overall performance.
Celestica's 2025 revenue guidance of $12.2 billion points toward a jump of 26% from the prior year and is an improvement over the 21% growth it achieved in 2024. Additionally, its non-GAAP earnings guidance of $5.90 per share would be a 52% jump over 2024. The company's solid growth is set to continue in 2026, with Celestica expecting a 31% top-line jump and a 39% spike in earnings to $8.20 per share.
However, it could do better than that due to its growing share of the custom Ethernet switch market. Celestica estimates that it controlled 55% of custom Ethernet switches last year, up from 40% in 2024. The company is anticipating a 78% increase in the custom AI processor market this year, which could pave the way for stronger growth in 2026.
Also, Celestica has been approached by a hyperscaler to design rack-scale data center networking solutions, and the company expects to start mass production for this customer in 2026. This could set Celestica up for potential outperformance this year.
NYSE: CLS
Key Data Points
The stock is still worth buying
Celestica stock is trading at just 3.2 times sales, even after the stunning gains of the past year. That's a discount to the Nasdaq Composite index's average sales multiple of 5.5. If Celestica achieves $16 billion in revenue this year and trades in line with the index's average sales multiple, its market cap could hit $88 billion.
That's more than double its current market cap, which is why investors should consider buying this AI stock hand over fist before it soars higher.
