However, there is another company that’s winning big from the huge investments in AI data centers<\/a> and is poised to grow faster than Nvidia. Celestica (NYSE:CLS), which designs, engineers, and builds hardware used in data centers and cloud computing infrastructure, released phenomenal results for the third quarter on Oct. 26. <\/p>\n Shares of the Canadian company surged 12% following its report. Let’s see why that was the case. <\/p>\n Image source: Getty Images. <\/p>\n The AI infrastructure build-out has led to terrific acceleration in Celestica’s growth <\/p>\n Celestica is a contract electronics manufacturer that provides services across multiple verticals. However, it is the company’s connectivity and cloud solutions (CCS) business that’s fueling its growth right now. <\/p>\n Celestica’s Q3 revenue increased 83% year over year to $5.83 billion. What’s more, the company’s adjusted earnings more than doubled from the year-ago period to $3.30 per share. The CCS segment produced 84% of Celestica’s top line last quarter, and its revenue increased by 102% from the year-ago period. <\/p>\n Celestica divides its CCS segment into networking & computing and storage. The networking sub-segment’s revenue increased by 68% from last year to $3.26 billion. Meanwhile, compute and storage saw stronger growth of 242% to $1.61 billion. The company has built a solid customer base that includes Advanced Micro Devices, Broadcom, and Intel, and all these chip giants have been growing at a solid pace. <\/p>\n As these customers are tapping Celestica to build high-speed networking components such as switches, along with storage controllers and custom AI chips, it is easy to see why Celestica’s growth has taken off. The company has raised its 2026 guidance, now expecting a 69% revenue increase to $21 billion. Adjusted earnings per share<\/a> (EPS) are projected to jump by 91% to $11.55. <\/p>\n Story Continues <\/p>\n Celestica has constantly increased its guidance throughout the year. It was originally expecting $16 billion in 2026 revenue, along with adjusted EPS of $8.20. Clearly, the strong data center spending environment has supercharged its growth as the year has progressed. More importantly, Celestica’s 2027 guidance of $40 billion in revenue implies a 90% jump from 2026. Additionally, it expects adjusted EPS to jump by 86% to $21.50. <\/p>\n However, don’t be surprised to see Celestica raise its guidance in the future due to higher planned data center net capacity additions for 2027. <\/p>\n The valuation makes the stock a screaming buy <\/p>\n Trading at just 14 times forward earnings, Celestica stock is a steal right now. In fact, Celestica’s forward earnings multiple is identical to that of industry bellwether Nvidia. But what’s worth noting is that Celestica’s 2027 forecast indicates that it is on track to clock faster growth than Nvidia. <\/p>\n The semiconductor giant expects 70% revenue growth next year, and we have just seen that Celestica has issued a stronger forecast that may improve. That’s why I won’t be surprised to see Celestica stock trade at a premium valuation in the future. In fact, Celestica’s earnings could nearly triple in just two years, according to consensus estimates. <\/p>\n CLS EPS Estimates for Current Fiscal Year<\/a> data by YCharts<\/a> <\/p>\n If the stock trades at even 21 times earnings at the end of 2028, in line with the tech-laden Nasdaq-100 index’s forward earnings multiple, its price could soar to $660 (based on 2028’s projected EPS of $31.27). That implies potential upside of 144% in just over two years, indicating that Celestica’s earnings-driven bull run is sustainable. <\/p>\n Finally, the valuation suggests that Celestica is a value stock that’s capable of growing at a phenomenal pace, which is why buying it is a no-brainer right now. <\/p>\n Should you buy stock in Celestica right now? <\/p>\n Before you buy stock in Celestica, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Celestica wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $334,308!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,323,413!* <\/p>\n Now, it’s worth noting Stock Advisor’s total average return is 897% \u2014 a market-crushing outperformance compared to 213% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of October 30, 2026. <\/p>\n Harsh Chauhan<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, Celestica, Intel, and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> <\/p>\n
<\/a> <\/p>\n