Celestica (TSX:CLS) Is Up 21.5% After Launching Ultra-Dense SD6300 Storage Platform – What's Changed

• In November 2025, Celestica Inc. announced the introduction of its SD6300 ultra-dense storage platform, offering the industry’s highest density and most compact JBOD system to meet AI and enterprise data growth needs.
• This launch highlights Celestica's push into advanced storage solutions designed to maximize data center efficiency for AI, hyperscaler, and enterprise clients.
• We'll now look at how the SD6300’s compact, high-density design could impact Celestica's broader investment outlook and market positioning.

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Celestica Investment Narrative Recap

To be a Celestica shareholder, you need to believe in sustained demand for advanced AI and hyperscaler infrastructure, with successful execution and product development as major near-term catalysts. The SD6300 launch highlights Celestica’s efforts to meet the AI-driven storage needs of new and existing customers, but does not materially reduce the business’s key risk: revenue concentration with a handful of hyperscaler clients, which continues to create the most significant volatility for the company.

Of recent announcements, the Q3 2025 earnings report stands out, showcasing robust sales and net income growth. This momentum could encourage optimism about product launches like the SD6300 contributing to short-term revenue strength, although it does not address the concentration risk that still looms over Celestica’s business model.

In contrast, investors should be aware of how exposure to a small group of customers can quickly...

Read the full narrative on Celestica (it's free!)

Celestica's narrative projects $17.4 billion revenue and $992.0 million earnings by 2028. This requires 17.9% yearly revenue growth and a $453.6 million earnings increase from $538.4 million today.

Uncover how Celestica's forecasts yield a CA$569.94 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Twenty members of the Simply Wall St Community valued Celestica between CA$145.84 and CA$569.94. The business still faces the risk that a sudden pullback in hyperscaler spending could impact operating results and expectations.

Explore 20 other fair value estimates on Celestica - why the stock might be worth less than half the current price!

Build Your Own Celestica Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Celestica research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Celestica research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Celestica's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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