Celestica unveils new 1.6TbE data center switches for AI applications

TORONTO - Celestica Inc. (TSX:CLS) (NYSE:CLS), a prominent player in the Electronic Equipment industry with a market capitalization of $29.9 billion and impressive year-to-date returns of 181%, introduced two new 1.6TbE data center switches on Friday, designed specifically for high-bandwidth AI and machine learning applications. According to InvestingPro data, the company’s stock is trading near its 52-week high, reflecting strong investor confidence in its AI-focused initiatives.

The DS6000 and DS6001 switches are based on Broadcom’s Tomahawk 6 chipset and provide up to 102.4Tbps of switching capacity, doubling the capacity of Celestica’s existing 800G solutions, according to the company’s press release. This product launch comes as Celestica demonstrates robust revenue growth of 20.5% in the last twelve months, positioning the company for continued expansion in the high-performance computing market.

The DS6000 is a 3RU, 64-port switch for traditional air-cooled data centers, while the DS6001 is a 2OU, 64-port switch offering a hybrid cooling solution based on the 21-inch OCP ORv3 rack.

Both switches support an open-source Network Operating System approach through Celestica Solutions for SONiC and other SONiC distributions. The company plans to contribute the specifications to the Open Compute Project (OCP) Community and list them on the OCP Marketplace.

"The DS6000 and DS6001 represent a new era in high-performance networking, doubling the switching capacity of our current offerings and designed specifically to meet the demands of AI/ML cluster applications," said Gavin Cato, SVP & GM Portfolio Solutions & AI Platform Engineering at Celestica.

The DS6000 features 64 x 1.6TbE OSFP ports with support for various port speeds (50/100/200/400/800GbE), redundant field-replaceable fans, and hot-swappable power supplies.

The DS6001 maintains the same networking performance while operating in a hybrid cooling environment, taking up only 2U of rack space and optimizing energy efficiency.

Celestica will showcase the DS6000 at the OCP Global Summit 2025 in San Jose, California, from October 13-16. With the company’s next earnings report due on October 27, investors can access comprehensive analysis and 20+ additional insights through InvestingPro’s detailed research reports, which provide deep-dive analysis of Celestica’s financial health and growth prospects.

In other recent news, Celestica reported impressive financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share of $1.39, which was higher than the projected $1.23, and reported revenue of $2.89 billion, exceeding the anticipated $2.67 billion. Following these strong results, Celestica increased its full-year guidance, now expecting revenue of $11.55 billion and adjusted EPS of $5.50. In response to these developments, RBC Capital raised its price target for Celestica to $225, citing robust demand from hyperscalers, and maintained an Outperform rating. Stifel also adjusted its price target upward to $230, highlighting the company’s growth driven by AI demand. Additionally, Celestica announced the appointment of Chris Colpitts to its Board of Directors, expanding the board to nine members. Colpitts brings extensive experience in technology, media, and telecommunications sectors. These updates reflect Celestica’s ongoing strategic and financial progress.

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