Chicago, IL – March 24, 2025 – Today, Zacks Investment Ideas feature highlights Celestica Inc. CLS, Nvidia’s NVDA and Taiwan Semiconductor Manufacturing Co. TSM.
2 Cheap AI Stocks to Buy Now and Hold Forever
Wall Street pushed the stock market higher on Wednesday after Jay Powell and the Fed confirmed that two interest rate cuts are still on the table in the back half of 2025. The positivity waned on Thursday as investors avoid diving back in amid the tariff fight worries and other geopolitical uncertainties.
The bulls will have to fight back above the 200-day and the 50-week soon or risk the recent momentum giving way.
Thankfully, the backbones of the stock market (interest rates and earnings growth expectations) are bullish. On top of that, Nvidia's big conference highlighted that the artificial intelligence spending boom appears to remain on track.
Investors who can handle near-term volatility and downside should consider buying beaten-down stocks at levels that might look like steals five years or five months from now.
Calling a bottom in real-time is impossible. But the stock market rewards patient investors who buy into downturns. The S&P 500 has surged over 75% since the start of 2020, with the Nasdaq up 96%. This impressive run includes the COVID bear market and the prolonged 2022 bear market.
Today’s Full Court Finance at Zacks explores two great technology stocks—Celestica Inc. and Taiwan Semiconductor Manufacturing Co.—to buy for impressive value and long-term artificial intelligence growth.
Time to Buy this Under-the-Radar Tech Stock for Value and Growth
Celestica Inc. is a multinational electronics manufacturing services company. CLS specializes in designing, engineering, and manufacturing products across critical growth areas such as AI data centers, semiconductor equipment, and energy generation/storage.
Celestica is working directly with multiple AI hyperscalers. The company las quarter landed some big customer wins, including a “1.6 Terabyte switching program with a second Hyperscaler customer…. supporting the customer with the design and production of a fully AI-optimized networking rack.” AI Hyperscalers include Meta, Amazon, Microsoft, and other technology giants.
The electronics manufacturing company also benefits from the long-term upside across aerospace and defense, telecom, healthcare tech, supply chain solutions, and beyond.
Celestica, which went public in the late 1990s, supercharged its growth over the last several years, averaging 20% revenue growth between FY22-FY24. The picks-and-shovels tech firm averaged 65% EPS growth on a GAAP basis during that stretch.
CLS provided upbeat 2025 guidance at the end of January. Celestica is projected to grow its revenue by 12% in 2025 and 18% in 2026 to reach $12.72 billion vs. $5.6 billion in 2021. The tech firm is expected to expand its adjusted earnings by 23% both years. The stock’s upbeat earnings revisions help it land a Zacks Rank #1 (Strong Buy), with its Most Accurate FY26 estimate 9% above consensus.
Celestica stock soared over 3,000% in the past five years (off the Covid lows), crushing the Zacks Tech sector’s 175% and Nvidia’s 2,100%.
The growth and AI selloff has CLS trading 33% below its highs and 50% below its average Zacks price target. Bulls are trying to help it retake its 21-day after Celestica found support near its 200-day and its post-Trump election breakout levels.
On the valuation front, Celestica trades 45% below its 10-year highs and an 18% discount to Tech at 19.9X forward 12-month earnings. Celestica also trades at 0.9X forward 12-month sales for a staggering 80% value compared to Tech’s 6.3X.
Why This Industry-Leading Chip Stock is a Must-Buy
Taiwan Semiconductor Manufacturing Co. physically builds many of the most cutting-edge chips powering AI and other technological innovations. The AI boom and much of our technology-based global economy would not be possible without Taiwan Semi.
Nvidia, Apple, and other tech giants rely on Taiwan Semi to manufacture their most advanced chips. TSM’s founding principle of ‘manufacturing only’ helped the company grab more and more market share of the most indispensable industry in the world while most other semiconductor companies slowly got out of the chip-building business altogether.
Taiwan Semi reportedly holds a roughly 60% share of the global foundry market and 90% of advanced chip manufacturing. The chip maker is rapidly addressing its very real geopolitical fears by expanding outside Taiwan into Japan and the U.S. The company is well run, with a strong balance sheet that supports its growth plans and dividends.
TSMC is projected to grow its revenue by 26% in FY25 and 19% in FY26 to surge from $90 billion in 2024 to $136 billion next year. Meanwhile, it is projected to expand its adjusted EPS by 30% in FY25 and 20% next year.
Taiwan Semi stock tripled the Zacks Tech sector over the past 20 years. It has surged 90% over the past two years and it matched Nivida in the last 12 months.
The chip titan got caught up in the wave of profit-taking like all other tech stocks and AI names to trade 40% below its average Zacks price target and around 20% below its highs. TSMC, like the Nasdaq, is trying to find support near its 50-week moving average.
Taiwan Semi trades at a 45% discount to its highs and 23% below Tech at 18.2X forward 12-month earnings. Even though it has soared 620% in the last decade, TSM’s valuation floats at its 10-year median.
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