Celestica Inc. has recently been given a Neutral rating by UBS, with a price target of $95. UBS notes that while Celestica is a leader in artificial intelligence infrastructure, the demand for its services is cyclical in the long term. UBS's analysis suggests that the stock is currently priced for a growth rate of at least 10% over the next decade, which is higher than the company's revenue growth guidance of 8.3% for 2025. UBS recommends waiting for a better entry point before investing.
Celestica operates in the connectivity and cloud solutions sector, as well as advanced technology solutions. The company is seen as strategically important in the AI hardware market, with 40 hedge fund holders.
MatX, a chip-design startup, has raised $80 million in funding to address the global shortage of AI-specific chips. The funding round was led by Spark Capital. MatX aims to provide high-performance chips optimized for AI workloads and is positioning itself as a competitor to NVIDIA GPUs.
Hedge funds have shown increased interest in AI stocks, with research indicating that imitating their top stock picks can lead to significant market outperformance.