Celestica Slides 1.47% to 170th in Liquidity Despite AI-Driven 113% Rally

Celestica (TSX:CLS) fell 1.47% on August 11, 2025, with a trading volume of $0.57 billion, ranking 170th among stocks by daily liquidity. The decline follows a year of volatile performance driven by AI infrastructure demand and shifting trade dynamics. The company has seen its share price surge 113% over seven months, with a 197% rebound from April lows after tariff uncertainty eased and sector demand intensified.

The stock’s rally reflects Celestica’s strategic positioning in the AI manufacturing boom. Revenue grew to $11.6 billion in 2025, up 20.3% year-over-year, fueled by server and storage demand from hyperscalers. Second-quarter results exceeded expectations, with $2.89 billion in revenue and $1.39 in adjusted EPS, driven by the Communications segment. The company raised its 2025 revenue guidance to $11.55 billion, citing sustained demand and stable trade policies.

Despite strong fundamentals, the stock faces valuation challenges. A price-to-sales ratio of 2.3 and a forward P/E of 37.3 suggest stretched multiples compared to prior periods. Technical indicators like the RSI at 74 signal overbought conditions, hinting at potential short-term corrections. However, Celestica’s growth remains tied to long-term AI infrastructure investments, with hyperscaler orders providing near-term visibility.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day returned 166.71% from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly in volatile markets, as high-volume stocks react more dynamically to market shifts.