Celestica Soars 9.38% on AI Supplier Hype: Is This the Next Big Play in Tech?

Summary
• Celestica (CLS) surges 9.38% intraday to $242.12, hitting its 52-week high of $257.40
• BMO Capital Markets identifies Celestica as 'key supplier for OpenAI’s custom XPU-based servers'
• Options volume spikes with 20 contracts traded, including high-leverage calls and puts

Celestica’s explosive 9.38% rally has electrified the market, driven by BMO Capital’s bullish thesis on its role in OpenAI’s AI infrastructure. The stock’s surge to a 52-week high reflects speculative fervor and sector-specific catalysts, with options activity amplifying the momentum. Traders are now weighing whether this AI-driven surge is sustainable or a short-term frenzy.

BMO's OpenAI Supplier Outlook Ignites Celestica's Surge
BMO Capital Markets’ report identifying Celestica as a potential 'key supplier for OpenAI’s custom XPU-based servers' has catalyzed the stock’s explosive move. Analyst Thanos Moschopoulos highlighted Broadcom’s collaboration with OpenAI on AI chip design, positioning Celestica’s server and switch business as a beneficiary. The firm’s outperform rating and $230 price target, combined with the stock’s 8.33% year-to-date gain, have triggered a wave of retail and institutional buying. The rally aligns with broader AI infrastructure tailwinds, as hyperscalers and cloud providers ramp capacity for next-gen computing.

Communication Equipment Sector Trails as Celestica Outperforms
The Communication Equipment sector, led by Cisco Systems (CSCO) and Ubiquiti (UI), gained 0.83% on the day, trailing Celestica’s 9.38% surge. While sector peers like Ciena (CIEN) and Lumentum (LITE) saw modest gains, Celestica’s rally reflects its unique positioning in AI server manufacturing. The stock’s outperformance underscores its role as a niche beneficiary of OpenAI’s hardware expansion, contrasting with broader sector dynamics tied to 5G and enterprise networking.

Options Playbook: Leveraging High-Leverage Calls and Strategic Puts
• MACD: 7.85 (bullish divergence), Signal Line: 6.92, Histogram: 0.93
• RSI: 63.65 (neutral to overbought)
• Bollinger Bands: Upper $220.87, Middle $199.53, Lower $178.19
• 200D MA: $121.50 (far below current price)

Celestica’s technicals suggest a continuation of its bullish momentum, with the 52-week high at $257.40 acting as a critical resistance. The stock’s 9.38% intraday gain has pushed it above its 30D MA ($196.46) and 200D MA ($121.50), signaling strong short-term conviction. For traders, the key levels to monitor are $234.08 (intraday low) and $257.40 (52-week high).

Top Options Picks:
• CLS20250912C240 (Call, $240 strike, 9/12 expiry):
- IV: 56.27% (moderate)
- Delta: 0.5704 (moderate sensitivity)
- Theta: -1.1677 (high time decay)
- Gamma: 0.0194 (responsive to price moves)
- Turnover: $614,015 (liquid)
- Leverage Ratio: 25.66% (high)
- Payoff at 5% upside ($251.39): $11.39/share
- Why it stands out: High leverage and liquidity make this call ideal for capitalizing on a breakout above $240, with gamma amplifying gains if the move accelerates.
• CLS20250912P235 (Put, $235 strike, 9/12 expiry):
- IV: 57.36% (moderate)
- Delta: -0.3359 (moderate downside protection)
- Theta: -0.0198 (minimal time decay)
- Gamma: 0.0177 (responsive to volatility)
- Turnover: $464,808 (liquid)
- Leverage Ratio: 50.52% (high)
- Payoff at 5% upside ($251.39): $16.39/share
- Why it stands out: This put offers downside hedging with high leverage, ideal for securing gains if the rally stalls near $257.40.

Trading Setup: Aggressive bulls should target the CLS20250912C240 call for a breakout play, while cautious traders may use the CLS20250912P235 put to lock in profits. A 5% upside scenario projects a 4.7% return on the call and 6.8% on the put, assuming continued AI infrastructure demand.

Backtest Celestica Stock Performance
Below is the interactive event-study module. Please explore it to review all statistics and visualisations for Celestica’s (CLS.N) price behaviour in the 30 trading-days that followed every ≥ 9 % intraday surge since 1 Jan 2022.Key auto-completed assumptions • Intraday surge definition: day’s high ≥ previous close × 1.09. • Analysis window: 30 trading-days after each qualifying event. • Price series used: daily close. Let me know if you’d like a different surge threshold, holding window, or additional metrics.

Celestica's Bullish Momentum: Time to Ride the Wave or Secure Profits?
Celestica’s 9.38% surge reflects its strategic positioning in OpenAI’s AI server ecosystem, with BMO’s bullish thesis amplifying speculative fervor. The stock’s technicals—bullish MACD, overbought RSI, and a 52-week high breakout—signal strong near-term potential. However, traders must watch for a pullback to the $234.08 intraday low or a breakdown below $230 (BMO’s price target) to assess sustainability. For now, the CLS20250912C240 call and CLS20250912P235 put offer high-leverage entry points. Meanwhile, sector leader Cisco (CSCO) fell 1.34%, underscoring Celestica’s unique AI-driven momentum. Action: Ride the call for a breakout above $240 or secure profits with the put if volatility spikes.