Celestica Soars 8.5% on Q2 Earnings Surge and AI Infrastructure Momentum

Summary
• Celestica (CLS) surges 8.54% to $268.93, hitting 52-week high of $270.15
• Q2 2025 revenue jumps 21% to $2.89B, adjusted EPS up 54% to $1.39
• Launches 1.6TbE data center switches, signaling AI/ML infrastructure dominance
• Options chain sees heavy activity in October 24 call options, with CLS20251024C265 trading at 16.54% leverage
Celestica’s explosive 8.54% rally on October 15, 2025, reflects a perfect storm of earnings outperformance, product innovation, and sector tailwinds. The stock’s intraday high of $269.69 nearly closed the 52-week gap, driven by Q2 results that smashed guidance and a new AI switch launch. With options volatility spiking and leveraged ETFs like ANET (3.59% gain) amplifying sector momentum, CLS is now a focal point for capital chasing AI infrastructure growth.

Q2 Earnings Beat and AI Product Launch Fuel Rally
Celestica’s 8.54% surge stems from a blockbuster Q2 2025 report, where revenue surged 21% to $2.89 billion and adjusted EPS rose 54% to $1.39. The Connectivity & Cloud Solutions (CCS) segment, now 68% of revenue, drove growth with Hardware Platform Solutions (HPS) up 82% year-over-year. Simultaneously, the launch of 1.6TbE data center switches—positioned to power AI/ML clusters—cemented CLS’s role in the AI infrastructure boom. Analysts highlighted the stock’s 45x forward P/E as justified by 2025 guidance raised to $11.55 billion revenue and $5.50 adjusted EPS, signaling sustained demand from hyperscalers.

Communication Equipment Sector Gains Momentum as Celestica Leads
The Communication Equipment sector, led by Arista Networks (ANET) with a 3.59% intraday gain, is riding AI-driven infrastructure demand. Celestica’s rally outpaces peers like Juniper Networks (JNPR) and Ciena (CIEN), as its HPS segment captures 43% of sales with 8.0% margins. The sector’s 2025 EBITDA growth forecast of 18% aligns with CLS’s margin expansion from 7.1% in Q1 to 9.4% in Q2. While ANET benefits from campus networking, CLS’s focus on AI/ML switches positions it as a pure-play on hyperscaler CapEx cycles.

Options and ETFs to Capitalize on CLS’s AI Infrastructure Run
• 200-day average: 143.57 (far below current price)
• RSI: 53.51 (neutral, not overbought)
• MACD: 6.48 (bullish divergence from signal line 7.62)
• Bollinger Bands: Price at 268.93, above upper band 263.63, indicating strong momentum
• Key support/resistance: 243.35–244.34 (30D support), 89.54–93.44 (200D support)
• Sector ETF: XLK (Communication Services Select Sector SPDR) up 2.1%
• Leveraged ETF: LLDV (Leveraged Long Communication Services ETF) at 3.8%
Celestica’s technicals and fundamentals align for a continuation of its AI infrastructure-driven rally. The stock is trading above its 200-day average by 87% and within 0.5% of its 52-week high. Options with high leverage and moderate delta offer asymmetric upside. Two top picks from the October 24 chain are:
• CLS20251024C265 (Call, $265 strike, 16.54% leverage, 59.02% IV, delta 0.5925, theta -1.1023, gamma 0.0147): High leverage and moderate delta make this ideal for a 5% upside scenario (target $282.38).
• CLS20251024C267.5 (Call, $267.5 strike, 20.93% leverage, 65.91% IV, delta 0.5534, theta -1.1306, gamma 0.0134): Strong gamma and theta suggest rapid premium decay if the move accelerates.
Aggressive bulls should consider CLS20251024C265 into a breakout above $270, while LLDV offers leveraged exposure to the sector’s AI tailwinds.

Backtest Celestica Stock Performance
I ran the full workflow and successfully • pulled CLS-N daily price data (2022-01-01 → 2025-10-15) • extracted every date on which the stock closed ≥ 9 % above the prior day (saved as “CLS_N_9pct_surge_dates.json”).However, the dedicated Event-Backtest engine is currently throwing an internal error (missing “convert_statistics”) before it can generate the report. The problem recurs regardless of end-date adjustments, so we’ll need a workaround.Two practical alternatives:1. Use the Strategy-Backtest engine instead. – We treat each 9 %-surge date as an “open” signal and specify a rule for when to exit (e.g., fixed 5-day hold, hit a 10 % stop-loss/take-profit, etc.). – This engine does not rely on the failing function and should return the normal P&L / drawdown panel.2. I can summarise the surge statistics directly (count of events, average 1-/5-/10-day forward returns, etc.) using in-line analysis, then present the findings in a table. This avoids the visual module but gives the core insights.Please let me know which path you’d like to take, and—if you prefer option 1—the exit rule you’d like to apply (holding period, stop-loss / take-profit, or max days).

Celestica’s AI Infrastructure Play: Time to Lock in Gains or Ride the Wave?
Celestica’s 8.54% surge reflects its dominance in AI/ML infrastructure, with Q2 results and product launches validating its 45x forward P/E. The stock’s proximity to its 52-week high and strong options activity suggest momentum is intact. Investors should monitor the $270 level for a potential breakout, with CLS20251024C265 offering high leverage for a 5% upside. Meanwhile, the sector leader ANET (3.59% gain) underscores the broader AI infrastructure theme. For those seeking amplified exposure, LLDV provides 2x leveraged access to the sector’s growth. Watch for a sustained move above $270 to confirm the next phase of the rally.