Customer RelationshipsCelestica has benefited from the ramp in AI-related spending in the data center switch market as two of the top-five cloud SPs (Google and Amazon) were the company’s largest customers and accounted for ~40% of sales.
Financial PerformanceCelestica's revenue and earnings per share have significantly surpassed consensus estimates, which reflects the company's strong financial performance.
Market PositionCelestica holds a market-leading position in the 400G/800G sectors and is expected to sustain this position with advancements like 1.6T, along with its exposure to AI, indicating strong potential for future growth.