The artificial intelligence (AI) infrastructure boom is here to stay. SemiAnalysis, which provides independent research on the semiconductor industry, predicts that the data center build-out will accelerate next year.
SemiAnalysis notes that global data center capacity net additions could surge to 51.2 gigawatts (GW) in 2027, more than double this year’s 25 GW. The planned additions for next year point to an acceleration over 2026’s estimated 60% capacity addition. This is great news for Nvidia, as its strong share of the AI chip market should help sustain its impressive growth next year.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger.Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout.Continue »
However, there is another company that’s winning big from the huge investments in AI data centers and is poised to grow faster than Nvidia. Celestica (NYSE:CLS), which designs, engineers, and builds hardware used in data centers and cloud computing infrastructure, released phenomenal results for the third quarter on Oct. 26.
Shares of the Canadian company surged 12% following its report. Let’s see why that was the case.
The AI infrastructure build-out has led to terrific acceleration in Celestica’s growth
Celestica is a contract electronics manufacturer that provides services across multiple verticals. However, it is the company’s connectivity and cloud solutions (CCS) business that’s fueling its growth right now.
Celestica’s Q3 revenue increased 83% year over year to $5.83 billion. What’s more, the company’s adjusted earnings more than doubled from the year-ago period to $3.30 per share. The CCS segment produced 84% of Celestica’s top line last quarter, and its revenue increased by 102% from the year-ago period.
Celestica divides its CCS segment into networking & computing and storage. The networking sub-segment’s revenue increased by 68% from last year to $3.26 billion. Meanwhile, compute and storage saw stronger growth of 242% to $1.61 billion. The company has built a solid customer base that includes Advanced Micro Devices, Broadcom, and Intel, and all these chip giants have been growing at a solid pace.
As these customers are tapping Celestica to build high-speed networking components such as switches, along with storage controllers and custom AI chips, it is easy to see why Celestica’s growth has taken off. The company has raised its 2026 guidance, now expecting a 69% revenue increase to $21 billion. Adjusted earnings per share (EPS) are projected to jump by 91% to $11.55.
