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# Celestica: I've 3xed My Investment But I'm Still Buying More (Archive)
- URL: https://www.huntingalphas.com/celestica-ive-3xed-my-investment-but-im-still-buying-more-archive/
- Published: 2025-12-30T10:53:00.000Z
- Updated: 2026-02-28T19:29:20.000Z
- Description: Celestica’s AI networking dominance, long‑runway capex, and rising margins still justify buying.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, CLS, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Celestica’s leading position in Ethernet switches and custom HPS platforms is driving guidance upgrades, with management expecting around 40% annual CCS growth through 2026 and visibility into at least 2027.
- CLS plans to nearly double capex intensity to 2.0%–2.5% of revenue in FY26, funded by operating cash flow, to expand manufacturing capacity for strong demand expected through FY28.
- Higher‑margin HPS revenues are growing faster than the rest of the business, supporting steady CCS and overall EBIT margin expansion, with upside remaining as HPS mix continues to increase.
- Wall St has recently revised capex expectations downward for key hyperscaler customers like Microsoft, Meta, Amazon, and Alphabet, creating a risk if actual data center capex disappoints from these customers.
- CLS trades at a rich forward earnings multiple versus peers, but a recent valuation correction alongside broad-based upward EPS revisions and constructive technical consolidation keeps me bullish.

Read the full article [here](https://seekingalpha.com/article/4856337-celestica-ive-3xed-my-investment-but-im-still-buying-more?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*