Celestica Q1: AI Revenue Soars While The Stock Plunges, I'm Buying
Celestica reported strong Q1 results with 53% year-over-year revenue growth, driven by surging AI and hyperscaler demand, and raised its full-year guidance, yet its stock dropped 14% premarket due to broader market concerns. Despite the sell-off, the company demonstrated solid execution and margin expansion, with its CCS segment growing 76%. The author views the dip as an attractive buying opportunity, citing undervaluation relative to growth. Risks include customer concentration and market volatility.
- ▪Celestica's Q1 revenue grew 53% year-over-year, fueled by demand from hyperscaler data centers.
- ▪The company's Compute and Cloud Solutions (CCS) segment saw a 76% revenue increase year-over-year.
- ▪Despite beating earnings and raising guidance, Celestica's stock fell 14% premarket on April 28, 2026.
- ▪The author rates Celestica a Buy, arguing the stock is undervalued on a PEG basis despite a forward P/E near sector median.
- ▪Key risks include customer concentration and stock volatility amid broader market sentiment.
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