1 Super Tech Stock (Besides NVIDIA) to Buy Hand Over Fist in 2024

A TSX super tech stock could deliver comparable or far better returns than the AI king across the border.

| More on:
Person uses a tablet in a blurred warehouse as background

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Today’s tech superstar on the Nasdaq Composite is NVIDIA (NASDAQ:NVDA). This year is memorable for the graphics processing unit (GPU) because it became the king of artificial intelligence (AI). As of this writing, the market cap stands at US$3.1 trillion. Many investors regret missing out on the AI stock’s meteoric rise.

NVIDIA has a long growth runway ahead, although if you’re a Canadian investing in foreign stocks, you must hold it in your Registered Retirement Savings Plan (RRSP) to avoid paying a 15% foreign tax. However, Celestica (TSX:CLS) is also a super tech stock.

You won’t worry about the foreign tax because Celestica is a domestic stock. Hold it in a Tax-Free Savings Account (TFSA) for tax-free capital gains. Performance-wise, current investors are up 108.01% year to date. The overall return in 3.01 years is 748% compared to NVIDIA’s +530.44% in the same period. Also, Celestica trades at C$80.73 per share versus the US$128.20 for the American counterpart.

Created with Highcharts 11.4.3Celestica PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

AI player

Celestica provides complete lifecycle solutions to help clients optimize their supply chains, overcome market challenges, and minimize costs.

The $9.59 billion company is three decades old. Today, it offers products and services to original equipment manufacturers (OEMs), cloud-based, and other service providers. Customers come from various industries, such as aerospace, defence, industrial, health, communications, and enterprise markets.

Revolutionizing AI is not exclusive to NVIDIA. Celestica’s DS400, IU 32-port 400GbE data center switch is a powerful, high-capacity switch that’s ideal for modern AI workload demands. DS4000 is just one of a line of switches offering an open management approach and enabling cost efficiency at scale.

Financial performance

Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS) are the core business segments that contribute to revenues. The former has a higher margin profile and margin volatility and requires higher working capital. CCS is in a more competitive environment, subject to negative pricing pressures and experiences technology-driven demand shifts.  

Celestica is a dwarf alongside NVIDIA in terms of market capitalization. Nevertheless, its financial performance is mighty impressive. In the first quarter (Q1) of 2024, revenue and net earnings climbed 20.2% and 311.7% to US$2.2 billion and US$101.7 million versus Q1 2023. For 2024, the revenue outlook is US$9.1 billion compared to the original forecast of US$8.5 billion.

Management considers global supply chain constraints as a business risk in the mid-term. Celestica can’t predict future developments, including when ultimate suppliers return to full production and logistics providers’ operations return to normal. Fortunately, growth is on the horizon for the CCS segment following the definitive agreement to acquire NCD Global Services for US$36 million.

NCS, a U.S.-based company that offers IT infrastructure and asset management business, is expected to accelerate the IT Services roadmap within the CCS segment.

Thriving in a competitive sector

NVIDIA is the dominant force in the AI space, but other tech giants are potential threats to its business. They are developing custom chips to handle AI workloads. Meanwhile, Celestica commits to making necessary investments to support long-term objectives and create shareholder value. Thus far, the stock performance reflects a thriving business in a highly competitive technology sector.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Nvidia wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Nvidia. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

Safety helmets and gloves hang from a rack on a mining site.
Tech Stocks

Where I’d Invest $300 in the TSX Today

A TSX stock with a leading-edge safety technology is a screaming buy today for its high-growth potential.

Read more »

Map of Canada showing connectivity
Tech Stocks

1 Magnificent Canadian Stock Down 16% to Buy and Hold Forever

This Canadian stock might be one of the best opportunities out there right now while shares are down.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

This AI Stock Could Turbocharge Your TFSA With Substantial Growth Potential by 2030

Down almost 60% from all-time highs, AMD is an AI stock that has significant upside potential. Is the tech stock…

Read more »

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Tech Stocks

Constellation Software Looks Like a Tremendous Buy Today 

Constellation Software stock, which crossed the $5,000 mark, is trading below $4,500, presenting a compelling buy opportunity.

Read more »

Canada national flag waving in wind on clear day
Tech Stocks

Top Canadian Stocks to Buy for Great Growth in 2025

There are some Canadian stocks starting to recover, and these two look like top choices.

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Canadian Artificial Intelligence Stocks to Buy and Hold Until 2040

These three Canadian tech stocks to help you benefit from the surging demand for AI tech and infrastructure in the…

Read more »

money goes up and down in balance
Tech Stocks

Billionaires Are Selling Apple Stock and Buying This TSX Stock in Bulk

Billionaires might be dumping Apple stock after it lost over US$600 billion last week. But this other tech stock looks…

Read more »

Data center woman holding laptop
Tech Stocks

Better Tech Stock: Lightspeed Vs. Kinaxis?

These two tech stocks were once on top of the world, but after coming down in price, it might be…

Read more »