After markets closed on Monday, Celestica (CLS) posted strong quarterly results. Shares jumped by over 15%.
In the third quarter, the firm posted revenue of $5.83 billion and non-GAAP earnings of $3.30 per share. For Q4, Celestica is guiding revenue of up to $6.675 billion. That is above the consensus of $6.4 billion. And for FY 2026, it sees revenue of $21 billion.
The strong guidance should allay any fears that the AI market, particularly in the data center, is in a bubble.
Lumentum (LITE) gained 8.2% on Monday. It is working its way toward bouncing from the $750 low. The stock has traded from $750 to $1,000 since April. It rallied after Anthropic announced its IPO. That news sent AI names like NVIDIA (NVDA), AMD, Broadcom (AVGO), Intel (INTC), and Micron Technology (MU) higher.
Once again, active traders pivoted their bets out of beat-up sectors like telecom, communications, and consumer discretionary sectors. They moved back to tech firms that sold off recently. That included Coherent (COHR), SK Hynix (SKHY), Seagate (STX), and Western Digital (WDC).
Your Takeaway
Anthropic’s IPO is a reminder that the stock market has plenty of liquidity. Amazon (AMZN), Alphabet (GOOGL), and Nvidia in particular are the most compelling AI names for long-term investors to consider watching this quarter.
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