Celestica (NYSE:CLS) just staged a dramatic comeback, surging nearly 14% in Toronto after getting hammered earlier in the week. The rebound came on the back of a strong Q4 earnings beat, with revenue jumping 19% to $2.55 billionoutpacing estimates of $2.49 billion. Adjusted EPS hit $1.11, topping Wall Street expectations. The company also raised its 2025 revenue outlook to $10.7 billion, a bullish signal that helped investors shake off recent AI sector jitters.

• Warning! GuruFocus has detected 2 Warning Sign with CLS.

The sell-off was triggered by China's DeepSeek AI model, which sparked fears of a shift away from high-end AI hardware. But Celestica's CEO Rob Mionis downplayed those concerns, pointing to sustained demand for data center infrastructure and fresh AI program wins. The company's Connectivity & Cloud Solutions segment led the charge, with revenue soaring 30%. A key highlight: Celestica locked in its second 1.6-terabyte switching program with a major hyperscaler, reinforcing its grip on next-gen networking solutions.

With a record-breaking quarter and a robust pipeline heading into 2025, Celestica looks set to ride the AI wave rather than get crushed by it. The stock's rapid bounce signals investor confidence in its fundamentals, even as the AI landscape evolves. As enterprises continue pouring money into AI infrastructure, Celestica's strong execution and strategic wins make it a serious player in the spaceone investors can't afford to ignore.