We recently published a list of AI Stocks Dominate Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Celestica Inc. (NYSE:CLS) stands against other AI stocks that dominate Wednesday’s worst performers.

Wall Street’s major indices ended in the negative territory on Wednesday as investors parked funds to minimize risks from the resumption of trade war among the world’s largest economies, with a fresh round of tariffs scheduled to be implemented next week.

The tech-heavy Nasdaq fell the hardest, down 2.04 percent, followed by the S&P 500, down 1.12 percent. The Dow Jones declined by 0.31 percent.

According to President Donald Trump, all vehicles made outside of the US would be slapped with a 25-percent tariff.

The broader market downturn spilled over into 10 companies—predominantly AI stocks—further dampened by a cautious outlook on the industry. In this article, we listed Wednesday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A close-up of a circuit board with components depicting the intricate electronic componentry products the company produces.

Celestica Inc. (NYSE:CLS)

Celestica dropped its share prices by 9.97 percent on Wednesday to end at $87.66 apiece as investors repositioned portfolios following bearish remarks on the Artificial Intelligence industry.

CLS, an electronics manufacturer heavily investing in the AI industry, traded lower in line with its peers after Alibaba (NYSE:BABA) Chairman Joe Tsai posted sour comments on the industry’s heavy investments in AI, saying it has become a bubble.

“I think in a way, people are investing ahead of the demand that they’re seeing today, but they are projecting much bigger demand,” he said.

Just recently, the company announced that it achieved revenues of $2.55 billion in the fourth quarter of 2024, showing a 19 percent increase from the $2.14 billion in the fourth quarter of 2023.

Earnings per share during the same period also surged to $1.29 from 77 cents year-on-year.

For this year, CLS posted confidence that it would achieve improved business and earnings performance, as it raised its full-year outlook as a reflection of the strengthening demand in its Connectivity and Clouds Solutions segment.

Overall, CLS ranks 3rd on our list of AI stocks that dominate Wednesday’s worst performers. 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. If you are looking for an AI stock that is as promising as CLS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.