Celestica Inc. (CLS) stock surged 5.75% in Friday's intraday trading, building on its impressive 98.8% gain over the past year. The electronics manufacturing services company continues to attract investor attention, driven by positive analyst outlooks, strong financial performance, and its strategic position in the artificial intelligence (AI) market.

Wall Street analysts are increasingly optimistic about Celestica's prospects, with a mean price target of $120 indicating a potential upside of 34.5%. This bullish sentiment is supported by the company's robust financial outlook, with earnings expected to grow 30.2% year-over-year for the current fiscal year and sales growth projected at 13.2%. Celestica has also raised its guidance for 2025, anticipating revenues of $10.85 billion and non-GAAP adjusted earnings of $5 per share.

The company's involvement in the AI boom is a key driver of its recent success. Celestica offers a diverse portfolio of products integral to AI applications, including high-performance 800G network switches, advanced storage solutions, and its innovative Photonic Fabric for AI infrastructure. As demand for AI and machine learning compute power continues to grow, Celestica is well-positioned to capitalize on these trends. Additionally, technical indicators, such as the stock overtaking its 50-day moving average, suggest a short-term bullish trend that may be contributing to investor enthusiasm. Despite some challenges, including high operating expenses and competition in the sector, Celestica's strong market position and growth prospects continue to fuel its stock's upward momentum.