Celestica: Set for major gains driven by AI and data centers, says Barclays

Barclays thinks Celestica, a company that makes custom chips for huge data centers, is in for a big boost. The investment bank started covering the stock with a positive rating and predicts a 26% jump in price. Analyst George Wang thinks Celestica's products for data centers will be a hit, especially as artificial intelligence becomes more important. He says these products could bring in $4. 8 billion, making up half of Celestica's total revenue.Wang also mentioned that Celestica is ready for an upcoming technology upgrade in data centers. The company has a strong lead in this area, and Wang expects it to keep growing. He thinks the company's revenue from one type of switch product could reach $4 billion by 2025, with big players like Google, Meta, and Amazon leading the way. Celestica's stock has had a great year, jumping over 159%. In the last month alone, it's gone up by more than 37%. This shows investors are really interested in what the company is doing.