ClearBridge Value Strategy on Celestica
Thesis
ClearBridge initiated a position in Celestica following weakness in companies benefiting from AI capital expenditure. Celestica provides electronics manufacturing services and supplies infrastructure used in AI development. The managers used the summer selloff as an opportunity to gain exposure at a more attractive entry point. The investment reflects a selective approach to AI enablers rather than chasing momentum-driven rallies.
“We also initiated a position in Celestica, an electronics manufacturing services provider and AI infrastructure supplier, buying on weakness after the summer selloff”
Key risks
- Not all capital committed to AI infrastructure may generate attractive returns.
- Renewed selling in AI capital-expenditure beneficiaries could pressure valuations.
- Higher funding costs and volatile market flows could weaken sentiment.