Latest news with #techstock
Yahoo
3 days ago
- Business
- Yahoo
Is It Too Late to Buy Celestica Stock?
Written by Aditya Raghunath at The Motley Fool Canada Valued at a market cap of $33 billion, Celestica (TSX:CLS) is a TSX stock that has been on an absolute tear in the last 12 months, rising close to 300%. Moreover, in the past decade, Celestica stock has returned an emphatic 1,560%, crushing broader market returns by a wide margin. As past returns are not reflective of future gains, let's see if you should own this TSX tech stock at the current valuation. How did Celestica stock perform in Q2 2025? Celestica is a global electronics manufacturing services provider offering comprehensive supply chain solutions through two segments: Advanced Technology Solutions and Connectivity and Cloud Solutions. It provides design, development, manufacturing, assembly, testing, systems integration, and after-market services to original equipment manufacturers and cloud service providers. Celestica serves diverse markets, including the aerospace and defence, industrial, HealthTech, capital equipment, communications, and enterprise sectors, with particular strength in hyperscale data centre infrastructure manufacturing. Celestica stock represents a compelling investment opportunity as the company rides the unprecedented wave of AI-driven data centre expansion. The electronics manufacturing services provider delivered exceptional Q2 results, with revenue of $2.9 billion and adjusted earnings per share of $1.39, both exceeding guidance ranges. The investment thesis centers on Celestica's dominant position in networking infrastructure for hyperscale customers. Its Communications and Cloud Solutions (CCS) segment grew by 28% year-over-year, driven by explosive demand for 800G networking switches alongside continued strength in 400G products. Notably, 800G volumes reached parity with 400G in Q2, with every major 400G customer transitioning to 800G platforms. This positions Celestica to capture market share gains as hyperscalers like Google, Amazon, and Microsoft rapidly expand their AI infrastructure. Management remains optimistic about near-term growth as it forecasts revenue of $11.6 billion in 2025, an increase of 20% year over year. Comparatively, adjusted earnings are forecast to increase by 20% to $5.50 per share. Celestica reported an operating margin of 7.4% in Q2, a quarterly record and expects free cash flow to total $400 million this year. Celestica's competitive moat stems from its globally diversified manufacturing footprint across 16 countries, providing customers with supply chain resilience and geographic flexibility. The company has proven manufacturing readiness with capacity to support $3–4 billion in additional revenue across key locations, including Thailand, Mexico, and Texas. This scalability advantage is crucial as hyperscalers continue aggressive capital expenditure spending on AI infrastructure. Is the TSX stock still undervalued? Analysts tracking Celestica stock forecast revenue to rise from $9.6 billion in 2024 to $19.2 billion in 2028. Its adjusted earnings are forecast to expand from $3.88 per share to $11.2 per share in this period. Today, the TSX tech stock trades at 34 times forward earnings, which is much higher compared to its historical multiple of 10.4 times. If CLS stock is priced at 30 times forward earnings, it should trade around $336 in early 2028, indicating upside potential of 18% from current levels. The secular tailwinds supporting Celestica's growth remain robust. Hyperscaler customers are in early innings of multi-year AI infrastructure buildouts, with recent capital expenditure increases from major cloud providers validating the sustained demand environment. The upcoming transition to 1.6T networking and next-generation AI/ML compute platforms provides additional growth catalysts extending through 2026–2027. Trading at reasonable valuations despite exceptional fundamentals, Celestica stock offers investors direct exposure to the AI infrastructure boom through a proven execution partner with market-leading capabilities, strong customer relationships, and operating leverage at volume scale. The post Is It Too Late to Buy Celestica Stock? appeared first on The Motley Fool Canada. Should you invest $1,000 in Shopify right now? Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Shopify wasn't one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,427.64!* Now, it's worth noting Stock Advisor Canada's total average return is 94%* – a market-crushing outperformance compared to 61%* for the S&P/TSX Composite Index. Don't miss out on our top 15 list, available when you join Stock Advisor Canada. See the 15 Stocks * Returns as of July 15th, 2025 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Yahoo
09-08-2025
- Business
- Yahoo
Surprising AI chip stock is up 90% in 30 days (and still climbing)
Surprising AI chip stock is up 90% in 30 days (and still climbing) originally appeared on TheStreet. In a space typically dominated by household names, AI chip player Astera Labs has effectively broken through the noise. After another earnings stunner, Astera stock just turned heads on Wall Street again, surprising even the bulls. Moreover, with Astera riding the wave of next-gen data center buildouts, its latest quarterly showing was a clear signal of its rapidly growing influence in AI infrastructure. 💵💰💰💵 Mr. Market's reaction was instant and powerful, pushing the stock into one of the year's most explosive tech stock rallies. Given the ferociousness of the move and Astera's growing strategic importance, it seems there's plenty of runway left in this under-the-radar AI stock. AI infrastructure buildout hits overdrive The AI infrastructure space is growing at a breakneck pace as stakeholders rush to lock in the power, connectivity, and capacity needed to scale generative AI workloads. Big Tech is leading the charge. In 2025 alone, Amazon, Google, Meta, and Microsoft are shelling out a whopping $350 billion on data centers, high-speed networks, and specialized spending spree is effectively reshaping tech ecosystems and regional economies. Private capital is also chasing the same opportunity. For instance, Brookfield is zeroing in on key investments like liquid cooling, GPUs, and chip fabrication. Apollo is making an even bigger splash, scooping Stream Data Centers to position for years of AI-driven demand. However, the real choke point now is Electricity. Silver Lake committed a massive $400 million just to secure gigawatts of power before buying land, underscoring the critical importance of grid access. Additionally, governments are stepping up, too. The U.S.'s 'Stargate Project,' with roughly $500 billion in planned investment, is matched by similar efforts from the EU in creating localized infrastructure. However, this scale-up isn't without stress. Data center power needs could double global electricity demand by 2030, weighing down utilities and new facility activations. Still, the upside is massive, with the boom adding 0.7 percentage points to U.S. GDP growth. Moreover, McKinsey estimates global data center investment could reach an eye-popping $6.7 trillion by 2030, suggesting that today's frenzy may just be the warm-up. Astera Labs emerges as AI's hidden backbone Astera Labs has done a tremendous job standing out in the crowded semiconductor niche. It's efficiently carved out a critical niche in high-speed, intelligent connectivity, the invisible plumbing that keeps AI and cloud infrastructure running smoothly. Also, it boasts a powerful hardware and software stack that's built for like PCIe 6.0 smart retimers, gearboxes, and the Scorpio smart fabric switches are all designed to move vast amounts of data between CPUs, GPUs, memory, and storage with minimal latency. On the software end, its COSMOS platform aids in monitoring and optimizing complex systems at scale. As generative AI workloads explode, data centers need ultra-efficient and reliable interconnects to sidestep performance hiccups. At the same time, Astera's PCIe 6.0 and CXL solutions meet this demand head-on, showing off powerful signal integrity for unbundled, rack-scale architectures. On top of that, Astera's powerful partnerships add to its advantage. Its gear is layered into NVIDIA's Blackwell-based MGX AI platforms, while working seamlessly with AMD's tech and other memory and storage providers. Speed matters, too. With its robust Cloud-Scale Interop Lab, Astera constantly tests for cross-vendor compatibility, minimizing deployment risk and speeding up hyperscaler rollout. Hence, with its competitive advantages, Astera is rapidly becoming the connective tissue of next-gen AI systems, powering the shape-shifting AI infrastructure boom. Astera Labs smashes Q2 expectations Astera Labs once again stunned Wall Street with another smashing quarterly performance, handily beating estimates across both lines. Shares rocketed over 28.7% on Aug. 6 following the earnings release, as the market reacted sharply to the beat-and-raise quarter. Investors didn't hesitate to reward the the past month, the stock's rally has grown from strength to strength, with it now up close to 90%, and 77% in the past six months. Its Q2 2025 report included non-GAAP EPS of $0.44, comfortably ahead of the $0.32–$0.33 expected range. Similarly, revenues hit $191.9 million, topping the $172 million forecast with year-over-year growth at 150%. The upbeat trend looks set to continue. For Q3, Astera expects sales to fall between $203 million and $210 million, well above consensus estimates, underscoring management's confidence in the long-term growth runway of its AI-focused connectivity solutions. Wall Street resets Astera Labs stock price targets Evercore ISI lifted its Astera Labs stock price target from $104 to $215, on the back of the explosive demand for the Scorpio P Series fabric switches and the upcoming X Series. More News: Veteran analyst spots unexpected star in Apple's earnings report Bank of America drops shocking price target on hot weight-loss stock post-earnings JPMorgan drops 3-word verdict on Amazon stock post-earnings JPMorgan bumped its target to $180, highlighting Astera's growing product pipeline and superb position in PCIe retimers. On top of that, Jefferies' projects' earnings could exceed $3 per share by 2026, a figure that's likely to push the stock to new heights. Surprising AI chip stock is up 90% in 30 days (and still climbing) first appeared on TheStreet on Aug 9, 2025 This story was originally reported by TheStreet on Aug 9, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Analyst sets new shocking price target hot on tech stock
Analyst sets new shocking price target hot on tech stock originally appeared on TheStreet. MicroStrategy (NASDAQ: MSTR) has seen a bull price target upgrade from Cantor Fitzgerald following the company's release of its first quarter results. Cantor Fitzgerald said in a note to clients that it increased its price target on the stock from $614 to $680, while keeping its "Overweight" rating. According to calculations, the new price target indicates that the stock could increase by 67.53% from its previous close of $405.89. Meanwhile, analyst opinions on MicroStrategy are mixed. According to MarketBeat, there is one sell rating, one hold rating, eleven buy ratings, and one strong buy rating, resulting in an average rating of "Moderate Buy" and an average price target of $ trades recently caught attention, with CFO Andrew Kang and EVP Wei-Ming Shao selling thousands of shares. Kang sold over 5,600 shares on May 20 for more than $2.3 million. That being said, institutional investors appear to remain committed to the company, with approximately 59.84% of the outstanding shares held by them. Other analysts also remain mostly bullish. According to TipRanks, UBS, Cowen, and BTIG Research have all reiterated buy ratings in the last couple of months. HC Wainwright initiated coverage on the stock in April with $480 price objective, while a more bearish Monness Crespi & Hardt called it a sell with a $200 price target. MicroStrategy has gained notoriety as a high-profile Bitcoin proxy due to its significant BTC holdings, whether through its acquisitions or loans. The stock has experienced considerable volatility, with a one-year low of 102.40 and a one-year high of $543.00. Year-to-date, the stock has increased by over 40.12% and is currently trading with a market capitalization of $110.97 billion. At the time of writing, MSTR was priced at $405.49. Analyst sets new shocking price target hot on tech stock first appeared on TheStreet on Jul 28, 2025 This story was originally reported by TheStreet on Jul 28, 2025, where it first appeared.
Yahoo
28-07-2025
- Business
- Yahoo
Morgan Stanley names tech stock winner from One Big Beautiful Bill Act
Morgan Stanley names tech stock winner from One Big Beautiful Bill Act originally appeared on TheStreet. Morgan Stanley has a brand new take on President Donald Trump's sweeping new tax law, and its impact on Big Tech could be huge. With President Trump's One Big Beautiful Bill Act, tech stock investors are hunting for the best names to cash in on early. 💵💰💰💵 In this regard, Morgan Stanley sees healthy upside for Amazon () , Google () , and Meta Platforms () . But in a fresh note, it has singled out one company as a clear winner, backed by its unique exposure to AI, data centers, and long-term R&D. It's not just about tax savings, but more about how that extra cash fuels the next leg of AI dominance. One Big Beautiful Bill Act reshapes Big Tech's tax playbook Since President Trump signed his massive tax bill, the regulatory landscape for Big Tech has shifted dramatically. Front and center is that the law allows 100% immediate expensing for qualified production property. In plain language, it allows businesses to fully deduct spending on data centers, chip fabrication plants, and AI hardware in the year of that's a huge shot of free cash flow, spurring a rush to accelerate AI infrastructure builds. The impact was immediate. Amazon, Microsoft, Google, and Meta have all looked to lock in write-downs and scale cloud capacity in the apparent gold rush. The bill also sweetens the R&D tax credit, while boosting the semiconductor production credit to 35%, incentivizing domestic chipmaking. On top of that, executive orders linked to the bill waive off environmental reviews under NEPA and the Clean Water Act for data center construction. That adds another rudder or two for tech giants looking for quicker AI infrastructure development. Nevertheless, the upshot comes at a steep price. The Congressional Budget Office estimates the bill could slash $4.46 trillion in tax revenue over a decade and add over $3 trillion to the national debt. Not to mention, it could also add new scrutiny on cross-border IP transfers, cooling global tech deals. That said, with the earnings season heating up, experts say the bill's effects will start showing up in lower tax burdens, higher capex, and a new era of AI domination. AI regulation freeze hands Big Tech a powerful edge Tucked inside President Trump's massive tax law is a bold move. That's a massive 10-year federal moratorium on any state-level AI regulations. It effectively wipes out a patchwork of local laws, replacing them with a uniform federal of Science and Technology Policy (OSTP) Director Michael Kratsios feels the shift is critical in pushing the U.S. ahead in the AI race against China. A uniform rulebook will accelerate nationwide deployment while protecting companies like Google and Microsoft from policy-related headwinds. Nonetheless, the critics aren't sold. Rep. Ro Khanna (D-Calif.) and more than 250 state lawmakers warn that the moratorium effectively takes away consumer protections, while concentrating power in Silicon Valley. Also, China's Premier Li Qiang has called for global AI governance, which goes against the U.S. go-fast model. Consequently, the Senate struck the moratorium at the start of the month, meaning states still have the authority to enforce their respective AI laws. Still, experts say the White House's July 24 'AI Action Plan' essentially revives the moratorium's spirit. Layering the federal AI development funding on top of state‑level regulatory leniency opens the door for effectively pressuring non‑compliant states to pull back or risk losing grants. More News: Top economist drops 6-word verdict on Trump tariffs, inflation Amazon's quiet pricing twist on tariffs stuns shoppers Nvidia avoids White House crackdown; Trump softens on AI giant So in essence, we're seeing the administration using funding carrots and sticks to keep the regulatory playing field intact. Morgan Stanley sees Amazon as biggest winner from One Big Beautiful Bill Act The massive tax law marks a major turning point for Big Tech, and Morgan Stanley is calling out a clear winner. In a new research note, analyst Brian Nowak says that President Trump's tax law will dramatically improve the free cash flow outlook for giants such as Amazon, Meta, and Google. However, he feels that Amazon in particular is positioned to benefit the most. Though Google and Meta will likely see meaningful FCF gains, up 5% and 22% by 2026, respectively, Amazon could unlock a humongous 30% jump, led by data center, logistics, and a burgeoning cloud footprint. Amazon: a tax-fueled AI power play Morgan Stanley's Brian Nowak predicts that Amazon could make $15 billion in incremental FCF between 2025 and 2027, plus another $11 billion in 2028. That cash won't sit idle, though. Rather than returning it all to investors, Nowak expects Amazon to reinvest heavily into its cloud behemoth, AWS, and retail innovation. The goal is therefore to continue boosting its lead in generative AI, automation, and infrastructure. Even reinvesting 50% of that cash could drive billions in savings and compound Amazon's cloud advantage and in its consumer delivery. Nowak has a Buy rating on Amazon and a lofty $300 price target, which implies close to a 30% Stanley names tech stock winner from One Big Beautiful Bill Act first appeared on TheStreet on Jul 28, 2025 This story was originally reported by TheStreet on Jul 28, 2025, where it first appeared.
Bloomberg
11-07-2025
- Business
- Bloomberg
GoTo Shares Are Tipped for Rebound After $2.2 Billion Selloff
Southeast Asia's worst-performing tech stock this year is poised to rebound as it makes strides toward sustained profits and its fintech business provides plenty of upside potential, analysts say. The beaten-down shares of Indonesia's PT GoTo Gojek Tokopedia fail to reflect its ongoing profitability turnaround, according to JPMorgan Chase & Co. and Aletheia Capital. The e-commerce firm's financial discipline and buybacks also point toward the prospect of an upward re-rating, SGMC Capital says.
