We recently compiled a list of the 10 Best Electronic Components Stocks to Buy Now. In this article, we are going to take a look at where Celestica Inc. (NYSE:CLS) stands against the other electronic components stocks.
President Trump recently exempted smartphones, computers, and many other electronic and tech devices and components from his reciprocal tariffs. A new guidance from US Customs and Border Protection that was issued on Friday, April 11 came after Trump had imposed 145% tariffs on products from China. The guidance also includes exemptions for semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards.
The White House explained that these exemptions were made because President Trump wants to give companies time to move their production and manufacturing to the US. On Sunday, April 13, US Commerce Secretary Howard Lutnick pointed out that these electronics and components would soon be covered under new tariffs. President Trump also said on social media that these products will receive no exceptions.
According to a Federal Register notice put online, the US Commerce Department started a national security investigation into imports of semiconductor technology and related products. The official document calls for public comments on the investigation with the comment period stated to end on May 7, 2025. This further confirms that chips and the electronic supply chain are not to be excluded from President Donald Trump’s tariff plans.
The investigation covers a wide variety of items. These include chip components like silicon wafers, equipment used to make chips, and “downstream products that contain semiconductors.” Semiconductors play a crucial role in various modern electronic devices and this investigation could have a big impact on the tech and electronics industries.
Methodology
To compile our list of the 10 best electronic components stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest electronic components companies. We sorted our results based on market capitalization and picked the top 25 electronic components stocks. We also reviewed our own rankings, financial media reports, and various online resources to compile a list of the best electronic components stocks. Next, we focused on the 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 best electronic components stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Celestica Inc. (CLS) The Best Electronic Components Stock To Buy Now?
A close-up of a circuit board with components depicting the intricate electronic componentry products the company produces.
Celestica Inc. (NYSE:CLS) is a global electronics manufacturing services (EMS) company that is based in Canada. The company specializes in design, manufacturing, hardware platform, and supply chain solutions to deliver end-to-end product lifecycle solutions for various industries, including technology, aerospace, industrial, and healthcare. The company offers off-the-shelf or customized solutions for networking, storage and computing. Celestica Inc. (NYSE:CLS) ranks among the best electronic components stocks to buy now.
The company is riding the AI wave through its AI/ML compute business and the current robust demand environment for data center hardware. The company has recently won a 1.6 Terabyte switching program with a major hyperscaler customer and an HPS Full Rack AI System program award. Rob Milonis, the CEO of the firm, stated during the company’s Q4 2024 earnings call that increased AI accessibility is expected to drive demand for networking solutions and pointed out that networking plays a crucial role in scaling AI systems, transporting data, training, and inference.
Renaissance Investment Management, an investment management company, stated the following regarding Celestica Inc. (NYSE:CLS) in its Q4 2024 “International Small Cap Strategy” investor letter:
“The top contributor to our portfolio performance during the quarter was Celestica Inc. (NYSE:CLS) (Canada), as the provider of electronic manufacturing services benefits from ongoing investments in AI infrastructure and high-bandwidth networking solutions. Celestica is well positioned to capitalize on emerging opportunities in next-generation data centers and networking technologies.”
Overall, CLS ranks 6th on our list of the best electronic components stocks to buy now. While we acknowledge the potential of CLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CLS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
