Celestica's stock soared 9.35% during intraday trading on Tuesday, marking a significant upward movement for the technology company.

The price increase was driven by intensifying market expectations for the company's business expansion in the AI server space. Specifically, Celestica is upgrading its role in Google TPU server operations from a pure electronics manufacturing services model to a higher-value joint design manufacturing model, incorporating proprietary design technology in critical areas such as thermal management and power systems. Simultaneously, the company is actively pursuing Amazon Web Services server projects, planning to participate in annual quota bidding as a second supplier.

Adding to the positive sentiment, RBC Capital maintained a Buy rating on Celestica with a price target of $440.00, providing further support for investor confidence in the company's trajectory amid sustained heavy investment in AI infrastructure.