Celestica Inc. (CLS)

Is the best Canadian AI infrastructure name. Trades at 32x forward PE. Growth will be strong.

Has owned this for a while. Tailwinds will continue. Revenues are correlated with data centres, which are rising well. Also, a network upgrade from 800 Gigs to 1.6 T will benefit revenues and margins. Also, the switch from AI training to AI inference will also benefit CLS. The PE is high around 30x, but revenues will accelerate.

Trading way above average analyst's price target. A good example of a time to use those mental trailing stops rather than price targets. That $270 level is key.

Analyze companies day by day, ask if it's still meeting expectations. He owns this one in his Canadian portfolio, and in his US small-cap. Last week, it reaffirmed 2025 growth expectations. More than 1/2 its business is directed at data centre development. Parabolic move, but fundamentals have also grown very well. Valuation still undemanding. 

Keep an eye on it, and don't get carried away with price momentum. Trim if it gets too big a position in your portfolio. There's a difference between a trim (portfolio management) and a sell (based on fundamental value).

A great comeback story, and shares are still inexpensive.

What Canadian company would benefit from 5G technologies, except the big telcos? No, there isn't one. By 2026, the 5G business will be worth $1.26 trillion globally. The problem is that service providers have to invest a lot of money and wait a long time to recoup that money. He, instead, invests in the companies supplying these service providers, like Cisco and Celestica.

They had products coming off their platforms. Margins are going up. She would be a buyer here.