Celestica Soars 6.77% as AI Infrastructure Momentum Ignites – What’s Fueling This Breakout?

Summary
• Celestica (CLS) surges 6.77% to $260.23, hitting its 52-week high of $270.15
• Q2 2025 earnings beat and upgraded guidance drive optimism
• New 1.6TbE data center switches position CLS as AI infrastructure leader
• Options chain shows aggressive bullish positioning with 265/270 call options dominating

Celestica’s explosive 6.77% intraday rally has pushed the stock to its 52-week high, fueled by a combination of product innovation, earnings optimism, and sector rotation into AI infrastructure. With the stock trading at $260.23—up from $243.72 at the open—investors are betting on CLS’s role in powering the next wave of AI-driven data centers. The move follows a Q2 earnings beat, upgraded 2025 guidance, and the launch of cutting-edge networking hardware. As the stock tests key technical levels, the options market reveals aggressive bullish positioning, suggesting the rally may not be over.

AI-Driven Product Launches and Earnings Optimism Drive Surge
Celestica’s 6.77% surge is directly tied to its recent product innovations and earnings performance. The company announced a new family of 1.6TbE data center switches designed to power AI/ML clusters, a critical component for hyperscalers and cloud providers. This follows a Q2 2025 earnings report that exceeded guidance, with revenue rising 21% year-over-year to $2.89 billion and adjusted EPS hitting $1.39. Management raised 2025 guidance to $11.55 billion in revenue and $5.50 in adjusted EPS, citing strong demand in its Connectivity and Cloud Solutions segment. Analysts have upgraded CLS to 'Strong-Buy,' citing structural margin expansion in its Hardware Platform Solutions (HPS) business, which now accounts for 43% of sales. The stock’s breakout above its 52-week high of $270.15 suggests momentum traders are capitalizing on the AI infrastructure narrative.

Technology Sector Volatile as Celestica Outperforms
While the broader Technology sector remains mixed, Celestica’s performance has outpaced peers. The S&P 500 Technology Index is up 50% year-to-date, but CLS has surged 175.91% YTD, outperforming even sector leaders like Cisco Systems (CSCO), which fell -0.87% intraday. This divergence highlights CLS’s unique positioning in AI infrastructure, where demand for high-speed networking hardware is outpacing traditional tech stocks. The company’s Connectivity and Cloud Solutions segment, now 68% of revenue, is capturing growth in 800G data center transitions, a trend expected to accelerate in 2026.

Options and ETF Strategies for Riding the AI Infrastructure Rally
• 200-day average: $142.01 (far below current price)
• RSI: 44.06 (neutral to bullish)
• MACD: 6.37 (bullish divergence from signal line at 8.10)
• Bollinger Bands: Price at $260.23, above middle band ($247.87)

Celestica’s technicals suggest a continuation of its AI-driven rally. The stock is trading above its 200-day average by 83%, with RSI in neutral territory and MACD showing bullish divergence. The Bollinger Bands indicate overbought conditions, but the 52-week high breakout suggests momentum is intact. For options traders, the CLS20251017C265 and CLS20251017C270 calls are top picks. The CLS20251017C265 has a 32.94% leverage ratio, 0.446 delta, and 1.862746 theta, making it ideal for a 5% upside scenario (targeting $273.24). The CLS20251017C270 offers 52.05% leverage and a 0.351 delta, with a projected payoff of $7.24 per contract if the stock hits $273.24. Both options have high turnover (297,257 and 393,776) and implied volatility in the 72–82% range, balancing risk and reward. Aggressive bulls should consider CLS20251017C270 into a break above $270.15, the 52-week high.

Backtest Celestica Stock Performance
Below is an interactive report of the one-day “RSI-oversold” strategy you requested. Key assumptions auto-filled for you (with rationale): • Stop-loss 10 % – a basic safeguard in case of extreme overnight gap against a one-day position. • Price taken at close – matches common RSI usage and your “buy when oversold” wording. Please explore the panel to view the detailed statistics and parameter settings.Highlights of the run (2022-01-03 to 2025-10-13): • Total return of strategy trades: +29.66 % • Annualised return: 8.02 % • Maximum drawdown while in position: -12.92 % • Sharpe ratio: 0.53 • Average trade: +0.86 % (wins avg +3.79 %, losses avg -3.54 %)Feel free to ask for parameter tweaks (e.g., different RSI threshold, longer holding window, alternative stop-loss) or additional analysis across multiple tickers.

Celestica’s AI Momentum Unstoppable – Act Now Before Volatility Fades
Celestica’s 6.77% surge is a testament to its leadership in AI infrastructure, driven by product innovation, earnings outperformance, and sector rotation. The stock’s breakout above its 52-week high of $270.15 and bullish technicals suggest the rally is far from over. Investors should monitor the $270.15 level for a potential continuation, while options traders can capitalize on aggressive call options like CLS20251017C270. Meanwhile, the Technology sector’s mixed performance, with CSCO down -0.87%, underscores CLS’s unique positioning. For those seeking exposure, now is the time to act before volatility tightens and the AI infrastructure narrative matures.