Business · Companies · 17 hrs ago
Celestica shares fall as investors question AI spending
Celestica’s shares have fallen as investors reassess the AI boom.
The Toronto-based company makes hardware used in data centres and counts Microsoft, Amazon, Meta and Alphabet among its customers.
Its shares rose nearly 1,650 per cent from the start of 2024 to a peak in June, but have since dropped 38 per cent and are near one-year lows.
In its latest quarter, revenue rose to US$5.8-billion, from US$2-billion in the same quarter of 2023, while adjusted earnings climbed to US$3.30 a share from 65 US cents.
Celestica’s executives forecast that 2027 revenue will rise 90 per cent, to US$40-billion, with profits expected to increase as well.
Investors are concerned that major technology companies are spending heavily on AI and data centres without knowing when those investments will pay off.
Celestica expects strong growth to continue, but its outlook depends in part on continued demand for data-centre equipment.
Celestica shares have fallen 38 per cent from their June high as investors question the sustainability of spending on AI and data centres.
The Toronto-based company supplies hardware for data centres and counts Microsoft, Amazon, Meta and Alphabet among its customers.
Celestica reported third-quarter revenue of US$5.8-billion, up from US$2-billion in the same quarter in 2023.
Executives forecast revenue of US$40-billion in 2027, a 90 per cent increase, and said operating margins and profits would also rise.
Concerns about hyperscalers’ spending and the timing of returns on AI investments have weighed on Celestica’s shares.
- Who
- Celestica Inc. and investors assessing its shares and the AI sector.
- What
- Celestica shares have fallen as investors question AI and data-centre spending.
- When
- The article was published on October 31, 2026; it says the shares fell 38 per cent from their June high.
- Where
- Celestica is based in Toronto, Canada.
- Why
- Investors are concerned about hyperscalers’ heavy spending on data centres and when, or whether, those investments will pay off.
Celestica executives
Investors concerned about AI spending
Growth outlook
Celestica executives
Executives forecast 90 per cent revenue growth in 2027 and further gains in margins and profits.
Investors concerned about AI spending
Investors are questioning whether hyperscalers’ AI spending is sustainable and when it will produce returns.
Celestica reported revenue of US$2-billion.
Celestica shares began a run-up that reached nearly 1,650 per cent by their June peak.
Celestica shares reached a high, after which they fell 38 per cent.
Celestica reported third-quarter results and executives forecast 2027 revenue of US$40-billion.
Alphabet shares fell 12.2 per cent after reporting financial figures, dragging down other stocks including Celestica.
- Headquarters
- Toronto, Canada
- Third-quarter revenue
- US$5.8-billion
- Share decline from June high
- 38 per cent
- 2027 revenue forecast
- US$40-billion
- 2027 operating margin forecast
- 9 per cent
- Customers
- Microsoft, Amazon, Meta and Alphabet
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