Celestica Positioned to Tap Into Long-Term AI Hardware Upgrade Cycle -- Market Talk

1056 GMT - Electronics manufacturing services provider Celestica has a long runway of demand to tap into, as AI hardware improves and requires updates. TD Cowen's John Shao says that AI networking infrastructure will evolve into a "recurring hardware refresh cycle rather than a one-time spending event" as aging 400G and 800G Ethernet switches deployed through 2029 are upgraded to higher-bandwidth architectures. Backed by big AI names like OpenAI and AMD, Shao says that Celestica can sustain around $20 billion in annual revenue beyond 2030 from switch replacements alone. "This creates a multi-stage refresh cycle that extends the AI networking opportunity well into the next decade and increases confidence in the durability of CLS's growth profile." (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

September 16, 2026 06:56 ET (10:56 GMT)