Celestica Stock Drops 13% Amid AI Sector Selloff, Analysts Remain Bullish

Celestica Inc. (NYSE: CLS; TSX: CLS) shares tumbled nearly 13% this week, closing at $306.50, as investor sentiment soured across the AI technology sector. The decline reflects broader market jitters about frothy valuations in AI-related stocks, with the TSX technology sector experiencing a pronounced downturn on December 12.

Despite the short-term volatility, institutional stakes and insider purchases signal underlying confidence in Celestica's growth trajectory. Analysts maintain bullish outlooks, projecting robust revenue and EPS growth through 2026. Early pre-market trading on December 15 showed a modest rebound to $312.10, though caution persists amid sector-wide weakness.

The selloff highlights the inherent volatility of high-growth AI plays, where rapid sentiment shifts can trigger sharp repricing. Companies with heavy exposure to AI and data center infrastructure remain particularly vulnerable to these market rotations.