Are you skimming through the best investing options to invest in today? Then, check out Celestica (TSX:CLS), a tech stock that beat Nvidia’s stock price rally while riding the artificial intelligence (AI) wave. Celestica has jumped 5,320% in the last five years, dwarfing Nvidia’s rally of 1,264%. Now you may be wondering if it is wise to invest in the stock at its all-time high.
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Why I’d most want to buy this tech stock today
Celestica is currently undergoing a business turnaround. It started by offering electronics manufacturing solutions for communications, enterprises, data centres, health, industrial, aerospace, and defence. However, the 5G revolution and the AI data centre revolution changed customers’ needs, and Celestica adapted to them. It now not only manufactures switching, routing, optical, wireless, and data centre products, but also helps with product designing, testing, licensing, and launch. It even provides after-market services.
This complete package has helped Celestica secure hyperscaler customers like Google. And once you are in the inner circle, other clients follow. Celestica onboarded a third hyperscaler client in April, which pushed the stock up 65%.
I am still bullish on the stock because I expect it to mirror the 2025 momentum. It fell 50% between February and 2025 when US tariffs first kicked in. It then picked up momentum, surging 400% by October 2025. Celestica probably had a hyperscaler customer by then, as its Connectivity Solutions revenue jumped 75–80% year-over-year in the second to fourth quarter of 2025.
Its Connectivity & Cloud Solutions (CCS) segment has been the key growth driver, now accounting for 75% of the company’s revenue. CCS revenue growth rate has slowed from triple-digit to double-digit, but there are no signs of stopping.
In 2026, the stock dipped 22% in December and remained tepid amidst rising geopolitical tensions. The stock picked up momentum in March as it secured new clients.
What excites me is its first-quarter 2026 revenue outlook for the Enterprise segment, where it expects revenue growth in the high teens. This reflects the hyperscaler-level growth for Celestica. And this revenue guidance is before it onboarded the third hyperscaler client. The new client will reflect in the CCS revenue for the remainder of 2026. I am expecting revenue growth to return to triple digits.
Celestica’s expansion plans
The confidence is further strengthened with Celestica’s expansion plans. It is investing $1 billion to build a new high-performance systems (HPS) design centre in Taiwan and Texas, and new manufacturing lines in Mexico and Japan. Once these manufacturing lines come online, revenue could grow further.
Celestica is expanding its operations beyond Canada. That explains the 5,000% rally. Its valuations of 44 times forward price-to-earnings ratio and 3.7 times price-to-sales ratio are the highest in two years. But so is the revenue growth. The year 2026 could see a jump in the Enterprise segment.
Celestica has many growth levers up its sleeves. The Advanced Technology Solutions segment has noticed tepid growth due to a dip in capital investment. Any uptick in momentum in any of the verticals could support growth.
Investor takeaway
Celestica is a long-term growth stock that is currently in its hypergrowth stage. It still has time for growth to normalize. The management is firing all cylinders in expanding its capability to cater to the growing needs of its larger clients. You can still catch the rally before it stabilizes.
