Stock Market Insights: Celestica and TSMC Growth Prospects

Stock market optimism wanes as geopolitical issues arise. Celestica and TSMC show strong earnings growth potential, making them attractive investments.

Date: 24-03-2025

AI Rating: 8

Investment Highlights

The report discusses the stock market's mixed performance influenced by interest rate dynamics and geopolitical uncertainties. Despite this volatility, specific stocks, notably Celestica Inc. (CLS) and Taiwan Semiconductor Manufacturing Co. (TSM), present substantial growth prospects.

Celestica Inc. (CLS)

Celestica is projected to achieve an impressive revenue growth rate of 12% in 2025 and 18% in 2026, escalating its revenue from 5.6 billion in 2021 to a forecasted 12.72 billion by 2026. The company has also averaged a remarkable 65% EPS growth on a GAAP basis over the past several years. These figures suggest a robust long-term growth trajectory and represent a bullish sentiment for investors. Additionally, Celestica’s strong position in AI data centers and partnerships with major tech firms bolster its market appeal. With a Zacks Rank #1 (Strong Buy), investors are encouraged to consider CLS for both value and growth.

Taiwan Semiconductor Manufacturing Co. (TSM)

TSMC reflects a positive outlook as it is projected to increase its revenue by 26% in FY25 and 19% in FY26, reaching from 90 billion in 2024 to 136 billion in 2025. The adjusted EPS is expected to grow by 30% in FY25 and 20% in FY26, showcasing resilient profit margins and the demand for its semiconductor products. Holding a substantial market share in global foundry services, TSMC's strategic expansion plans are likely to enhance its competitive edge amidst geopolitical challenges.

The report's detailed analysis and the focus on Celestica’s and TSMC’s growth metrics present a compelling case for investors looking to capitalize on promising technology stocks.

Stocks: CLS NVDA TSM