Celestica’s $1 Billion Capex to Fuel AI and Hyperscaler Networking Growth
TD Cowen kept a Hold rating and $330 target on Celestica after shares fell on AI disruption concerns, while BNP Paribas cited the pullback as a buying opportunity. Celestica saw strong 2025 order growth and plans $1 billion capex to drive 2027–2029 revenue from AI data centers and hyperscaler networking.
1. Analyst Ratings and Price Target
TD Cowen maintained its Hold rating and $330 price target on Celestica after shares fell over AI disruption worries. BNP Paribas flagged the pullback as a buying opportunity based on Celestica’s engineering expertise and original design manufacturing strengths.
2. Strong 2025 Order Growth
Celestica reported a sharp increase in customer orders during 2025, driven by its advanced engineering capabilities and ODM solutions. The order momentum underscores demand from connectivity, cloud and AI-driven data center customers.
3. Capital Spending and Long-Term Growth Drivers
The company plans $1 billion in capital expenditures this year to expand capacity and support revenue growth from 2027 through 2029. Key growth drivers include Google Tensor Processing Unit program ramps, large-scale hyperscaler networking switch deployments and rising AI data center investments.