Celestica Inc (CLS.TO)

Think of it as a Canadian DELL. Largely tied to GOOG's capex, the TPU program, and networking. Benefiting from the super-cycle. Not sure inside the AI trade is the best place to park capital. As supply starts catching up with demand, chances to earn outsized margins start compressing.

Not expensive today. Don't sell. Keep an open mind to ASML or TSM (for more stability).

It's had a run-up in the last year and needs to see some consolidation the coming year. Will bounce between $250-350 until there's a catalyst. CLS keeps beating and raising.

Peak in June around $600. Starting to slowly move below the 200-day MA, which is one of the key lines in the sand for him. Definitely trim a bit here. Long-term price momentum stalled, RSI has come off.

Moves in tandem with the semiconductor space. Have to see what happens with NVDA tonight.

Competitors have better cost of capital and scale. He'd prefer one of the Asian suppliers. Better opportunities elsewhere.

Very much aligned with the entire platform being built out, not just individual components. Direct exposure and concentration to the hyperscalers as customers. He thinks those capex numbers are going up, so there's still upside in this name. But with any narrative shift, this will get sold off first.

In a massive growth segment, with the AI infrastructure buildout. Strategically in a very good position. If you have your heart set on this one, valuation is very reasonable at below 20x PE. Yet FCF is fairly meagre, which indicates valuation is still stretched. Watch and wait.

Instead, he uses TSM for client portfolios. Valuations in the space tend to be fairly rich. So this name isn't a buy today. Watch and wait on this one too.

Is benefiting from the huge demand in the data centre buildout. Trades at a high PE, so expectations are high. 

Incredible chart over past 3 years (up over 1,000%). Trades fairly expensively at ~35x PE, not a lot of room for error. There is a capital cycle, and that cycle will end.

Trades at 41x PE. It comes down to whether demand will continue to rise with AI spending. If so, profits will continue to be profitable with EPS to jump from $10 in 2026 to $15 in 2027, then $19 in 2028, then $26 in 2029. CLS comes down to how much you want to pay for it. Beta is a volatile 2.04, twice as much as the TSX. So, earnings is very important. 

This is a great time to buy. Q1 revenue growth is up over 50% and guidance was increased. You could buy now and add if it goes lower to $430. They provide design, manufacturing and supply chain solutions including aero-defense and communication. It has recently collaborated with AMD.

META selling excess capacity is specific to META, not necessarily a sign that hardware is slowing. Still likes it here.

Canadian tech that's done well. Likes it, continuing to own going forward.