Celestica Surges 5.23% Amid AI and Data Center Hype: Is This the Start of a New Bull Run?

Summary
• Celestica (CLS) rockets 5.23% intraday, hitting a 52-week high of $289.67
• BMO Capital names CLS a top Canadian tech pick for 2026, citing AI-driven growth
• Leveraged ETF Tradr 2X Long CLS Daily ETF (CSEX) surges 9.43%, mirroring CLS’s momentum

Celestica’s explosive move has ignited speculation about its AI and data center ambitions, with the stock trading near record highs. The rally aligns with BMO Capital’s bullish thesis on the company’s triple-digit returns and a broader sector shift toward AI infrastructure. With a 190% gain this year and a dynamic PE of 43.5, CLS is now at a critical juncture between consolidation and breakout.

AI and Data Center Demand Fuel Celestica's Record Rally
Celestica’s 5.23% surge is directly tied to its role in the AI and data center boom, as highlighted by its CEO’s optimism and BMO Capital’s endorsement. The company’s services are in high demand for AI computing and infrastructure, with BMO noting CLS’s third consecutive year of triple-digit returns. Additionally, the leveraged ETF CSEX’s 9.43% jump underscores retail and institutional alignment with the stock’s momentum. This move reflects confidence in Celestica’s ability to capitalize on AI tailwinds, despite its current price near the 52-week high of $363.4.

Technology Hardware Sector Gains Momentum as Celestica Outpaces Peers
Celestica’s 5.23% gain dwarfs the Technology Hardware, Storage & Peripherals sector’s leader, Dell Technologies (DELL), which rose 1.92% intraday. While the sector remains in a long-term bullish trend, CLS’s performance highlights its unique positioning in AI infrastructure. The sector’s 30-day moving average of $316.52 lags CLS’s current price, suggesting the stock is outpacing broader industry trends. This divergence points to CLS’s potential to lead the sector’s next phase of growth.

Leveraged ETF and Options Playbook: How to Capitalize on Celestica's AI-Driven Momentum
• 200-day average: $189.83 (well below current price)
• 30-day MA: $316.52 (CLS at $285.085, below MA)
• RSI: 28.09 (oversold territory)
• MACD: -4.90 (bearish divergence)
• Bollinger Bands: CLS at $285.085, 30% below upper band ($365.56)

Celestica’s technicals suggest a short-term bearish trend but a long-term bullish setup. Key levels to watch include the 200-day MA ($189.83) as a critical support and the 30-day MA ($316.52) as a resistance. The leveraged ETF CSEX offers 2X exposure, amplifying CLS’s volatility. For options, two contracts stand out:

• CLS20251226C285 (Call, $285 strike, 12/26 expiry):
- IV: 53.27% (moderate)
- Leverage: 30.38%
- Delta: 0.53 (moderate sensitivity)
- Theta: -1.29 (high time decay)
- Gamma: 0.0177 (high sensitivity to price swings)
- Turnover: 47,174 (liquid)
- Payoff at 5% upside: $12.44 (max(0, 299.34 - 285))
- Why it stands out: High gamma and leverage make it ideal for a continuation of CLS’s rally.

• CLS20251226C290 (Call, $290 strike, 12/26 expiry):
- IV: 51.38% (moderate)
- Leverage: 41.94%
- Delta: 0.44 (moderate sensitivity)
- Theta: -1.15 (high time decay)
- Gamma: 0.0182 (high sensitivity)
- Turnover: 250,821 (extremely liquid)
- Payoff at 5% upside: $7.34 (max(0, 299.34 - 290))
- Why it stands out: High liquidity and leverage make it a top pick for aggressive bulls.

Hook: Aggressive bulls may consider CLS20251226C285 into a break above $289.67 (intraday high).

Backtest Celestica Stock Performance
Celestica Inc. (CLS) has shown significant performance following a 5% intraday surge from 2022 to the present. Here's a detailed analysis based on the backtest data:1. Overall Performance: - The 5% daily surge was detected on multiple dates since 2022-01-01. - Following the surge, Celestica’s stock exhibited strong post-surge performance.2. Impact of Product Diversification and R&D Focus: - Celestica's focus on product diversification and research and development has bolstered its ability to produce high-volume electronic products and complex technology infrastructure products. - This strategic focus has likely contributed to the company's strong financial performance and market outperformance.3. Earnings Performance: - Celestica has consistently beaten EPS and revenue estimates over the past years, with a trailing four-quarter average earnings surprise of 6.9%. - The company's robust earnings performance and positive earnings revisions indicate a strong financial trajectory.4. Market Position and Growth Prospects: - Celestica has gained 259.6% over the past year, significantly outperforming the industry's growth of 112.5%. - The company's bullish outlook for 2025, with projected revenues of approximately $12.2 billion, reflects confidence in its growth prospects.In conclusion, Celestica's performance following a 5% intraday surge from 2022 to now has been impressive, supported by its strategic product diversification, strong R&D focus, consistent earnings performance, and favorable market position. These factors collectively contribute to the company's robust growth and financial stability.

Bullish Setup Confirmed: Celestica's AI Playbook Demands Immediate Attention
Celestica’s 5.23% surge is a clear signal of its AI-driven momentum, with technicals and fundamentals aligning for a potential breakout. The stock’s RSI in oversold territory and Bollinger Bands compression suggest a volatile continuation. Investors should monitor the 200-day MA ($189.83) as a critical support and the sector leader Dell (DELL) at +1.92% for broader industry cues. Action: Watch for a breakdown below $285.085 or a breakout above $289.67 to confirm the next move. For those with a high-risk appetite, CLS20251226C285 offers a leveraged play on the AI narrative.