Celestica Weighs Google AI Server Role Against Broader Hyperscaler Story

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• Reports indicate Google is reconsidering how it allocates AI server assembly work across suppliers, including Celestica (TSX:CLS).

• Celestica is reported to have played a role in assembling Google AI servers, with some work potentially shifting to other manufacturers.

• The timing and scale of any changes to this customer relationship have not been clearly defined, which is drawing investor attention.

Celestica, listed as TSX:CLS, focuses on electronics manufacturing services and hardware platforms, including data center and cloud infrastructure. As AI infrastructure spending gains attention, being part of the supply chain for hyperscale customers such as Google can influence how investors think about the company’s positioning. Any adjustment in that business, even without precise figures, can shape how concentrated or diversified its revenue base appears.

For investors, key questions include how material Google related work is within Celestica’s overall mix and how flexible the company is in redeploying capacity if volumes from a large customer change. Monitoring future disclosures from Celestica about customer concentration, capital commitments and AI related programs may help in assessing how shifts in supplier allocations affect the company’s risk and opportunity profile.

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Why Celestica could be great value

Speculation about Celestica’s role in Google’s AI server assembly comes right after the company reported what investors may see as strong quarterly and full year numbers, with Q4 2025 sales of US$3,654.9 million and net income of US$267.5 million, and full year 2025 sales of US$12,390.9 million and net income of US$832.5 million. The contrast between the recent share price reaction and these reported figures is drawing attention to how much weight the market is putting on AI server exposure versus the broader business, especially when peers such as Sanmina and other electronics manufacturers are also competing for hyperscaler programs.

The current debate around Google related work goes straight to the heart of the existing Celestica narrative, which highlights both deeper ties to hyperscalers and the revenue concentration that comes with that. Investors who have been focused on AI infrastructure, index additions, and products like high density storage systems now have a live example of how customer specific headlines can influence sentiment around that long term AI and cloud story.

• ⚠️ Customer concentration risk, where changes in orders from a single large hyperscaler could affect perceived revenue stability.

• ⚠️ Execution risk around reallocating capacity and winning replacement programs if any AI server work shifts to competitors such as Inventec or other large contract manufacturers.

• 🎁 Recent Q4 and full year 2025 results, including earnings per share from continuing operations, give investors more data on how the broader business is performing beyond a single program.

• 🎁 Ongoing AI infrastructure demand across hyperscalers and end markets provides multiple potential avenues for Celestica to compete alongside peers like Sanmina and Foxconn.

From here, investors are likely to watch Celestica’s future commentary on customer mix, AI related programs, and capacity plans, as well as any clarification from Google or competing manufacturers on supplier allocations. For more context on how different investors connect these moving pieces to a longer term thesis, you can check what others are saying in the community narratives for Celestica.

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.

Companies discussed in this article include CLS.TO.

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