Is Celestica (TSX:CLS) Undervalued As OCP APAC Summit News Sharpens Its AI Story?
Celestica (TSX:CLS) is back in focus after its presentation at the OCP APAC Summit 2026 in Taipei, where Purush Gupta outlined the company’s role in open hardware and AI centric infrastructure platforms.
See our latest analysis for Celestica.
Celestica’s CA$431.98 share price has been volatile recently, with the stock falling 8.38% on the day yet still posting a 4.17% year to date share price return and a very large 5 year total shareholder return.
If you are thinking about how AI centric hardware trends could affect other opportunities, it may be worth checking Simply Wall St’s screener for 56 AI infrastructure stocks
After Celestica’s pullback, its CA$431.98 share price sits well below the average analyst target and the internal fair value estimate range. Is the current discount wide enough to compensate you for the risks in the numbers?
Most Popular Narrative: 36.2% Undervalued
The most followed narrative currently places Celestica’s fair value at CA$677.38, which is well above the recent CA$431.98 close. That gap is built on very specific expectations about AI infrastructure demand and margin resilience.
Accelerated demand for advanced networking and AI infrastructure by hyperscaler customers is driving rapid growth in Celestica's CCS segment, with multiple new 800G and upcoming 1.6T program ramps, supporting robust revenue expansion and greater operating leverage over the next 12 to 24 months.
There is a detailed growth playbook behind that valuation. It leans heavily on fast revenue expansion, firmer profit margins, and a future earnings multiple that assumes sustained AI centric demand. Curious which assumptions move the fair value most?
Result: Fair Value of CA$677.38 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Celestica’s heavy reliance on a few hyperscaler customers and the dominance of its CCS segment mean that any slowdown or program delay could quickly challenge this upbeat narrative.
Find out about the key risks to this Celestica narrative.
Next Steps
With mixed sentiment around Celestica’s AI opportunity and customer concentration, it helps to review the numbers yourself and move quickly to shape your own view using 4 key rewards and 2 important warning signs
Looking for more ideas beyond Celestica?
If you stop at Celestica, you risk missing other stocks with strong balance sheets, income potential, or overlooked quality that could better fit your goals.
- Spot resilient businesses with lower risk profiles by scanning the 8 resilient stocks with low risk scores and see which companies might help steady your portfolio.
- Target steady income by reviewing the 4 dividend fortresses that highlight higher yielding stocks with a focus on durability.
- Hunt for quality opportunities that are not widely followed yet by using the screener containing 8 high quality undiscovered gems before the crowd catches on.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com