For those who nonetheless suppose synthetic intelligence (AI) is nearly software program, it’s possible you’ll need to suppose once more. Each AI device, chatbot, or sensible system runs on knowledge centres, one thing very bodily. These amenities are filled with highly effective servers and networking gear that make AI potential.
As giant international tech firms rush to construct extra superior AI methods, they want extra computing energy than ever earlier than. Meaning extra high-performance servers, quicker networking methods, and specialised {hardware}. Whereas Canada doesn’t have many trillion-dollar AI giants, it does have firms that assist construct the spine of this expertise. And one TSX-listed inventory, Celestica (TSX:CLS), is popping out to be a key participant on this international enlargement. Let me clarify how.
Celestica’s function in AI knowledge centre development
Celestica will not be a family title like some Silicon Valley tech giants, however it performs an essential function behind the scenes. Primarily based in Toronto, this Canadian firm designs and manufactures {hardware} platforms and provide chain options for a few of the world’s largest cloud and enterprise expertise firms.
Following an eye-popping 2,150% soar over the past three years, CLS inventory at the moment trades at $403.96 per share, giving it a market cap of about $46.4 billion.
Celestica operates via two foremost enterprise segments, Connectivity and Cloud Options (CCS), and Superior Know-how Options (ATS). The CCS phase contains servers, storage methods, and networking platforms. This has turn into the corporate’s foremost development driver as demand for AI-related infrastructure continues to surge.
Regardless of macroeconomic uncertainties, its newest monetary outcomes present simply how robust the demand for its companies has been. Within the fourth quarter of 2025, Celestica’s income surged by 44% YoY (year-over-year) to US$3.7 billion. For the complete 12 months 2025, income reached US$12.4 billion, reflecting 28% development in comparison with 2024.
Its revenue development has additionally been robust. For the full-year, the corporate’s adjusted earnings jumped 56% YoY to US$6.05 per share.
Within the fourth quarter alone, Celestica’s CCS phase’s income surged 64% YoY to US$2.9 billion with the assistance of demand from hyperscale cloud suppliers constructing AI infrastructure.
Monetary momentum with multi-year visibility
Celestica’s development doesn’t seem like a short-term spike. For 2026, the corporate expects income of about US$17 billion and adjusted earnings of US$8.75 per share. That could be a important step up and displays the increasing scale of its AI-related packages.
To help this development, Celestica plans to extend capital spending to roughly US$1 billion in 2026. As well as, the corporate is increasing manufacturing capability in the US and Southeast Asia to fulfill the long-term plans of its giant cloud clients.
Why AI knowledge centres may drive the following long-term funding wave
AI infrastructure is among the most capital-intensive expertise shifts in many years. Coaching and operating superior AI fashions requires monumental computing energy, quick networking, specialised chips, and dependable international manufacturing. Corporations that may ship this {hardware} at scale turn into shut companions to the most important expertise gamers on the planet. Celestica’s international footprint, engineering experience, and built-in provide chain capabilities put it on that record. Contemplating that, for Canadian traders in search of AI publicity past software program builders and chip designers, this knowledge centre-focused Canadian AI infrastructure inventory seems to be like an amazing purchase for the long run.