Zacks Investment Ideas feature highlights Celestica, Nvidia's and Taiwan Semiconductor Manufacturing

For Immediate ReleaseChicago, 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 ForeverWall 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 GrowthCelestica 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-BuyTaiwan 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.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Celestica, Inc. (CLS): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks