How do you stack up with your tax-free savings account (TFSA)? In 2025, the cumulative TFSA contribution limit is now a grand total of $102,000. This means that many of us probably have plenty of room for more contributions. The tax savings are increasingly significant. Therefore, it’s best to take advantage of the TFSA vehicle to the fullest extent possible.
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2025 opportunities
Despite the uncertainties in the market and economy today, the new year brings with it many opportunities. As the year unfolds, I think we’ll see certain trends continue or emerge, which will bring with them many riches for the companies involved. In turn, those of us invested in these stocks will also reap the rewards.
Read on as I explore a couple of stocks that are benefitting from two such trends, artificial intelligence and liquified natural gas. Here is why they are well-suited for your TFSA in 2025.
Celestica: Maximum returns
While Celestica Inc. (TSX: CLS) stock is trading at all-time highs, the momentum appears to be as strong as ever. For example, Celestica’s “Connectivity and Cloud Solutions” (CCS) segment is benefitting enormously from the booming artificial intelligence, or AI, industry. Revenues in this segment have grown 39% in 2024 and at a 25% compound annual growth rate (CAGR) in the last three years.
This momentum is also reflected in the fact that analyst expectations for Celestica’s stock are rapidly rising, as they have been too low. In fact, the company has been beating expectations for many consecutive quarters, which has driven significant outperformance for Celestica’s stock.
Looking ahead, according to McKinsey and Company, AI-ready data centre capacity will rise at an average 33% per year between 2023 and 2030. If this is true, Celestica’s high performance data centre switches will be in high demand for years to come.
Given all of this, as well as the high returns that the company generates, Celestica stock’s valuation remains reasonable at this time, in my view. This makes it a great addition to any TFSA portfolio today.
Tourmaline: Benefitting from LNG
The natural gas industry is another industry that I think has a bullish outlook in 2025. Natural gas prices currently trade at just above $3.46 per million British thermal units (MMBtu). This is higher than five years ago, but significantly lower than 2023 levels.
In the next year, I believe a few factors will cause natural gas prices to rise. Firstly, I think that liquified natural gas demand from Asia will continue to be a strong trend. Tourmaline Oil Corp. (TSX: TOU) is increasingly involved with this business, as the company has established a US Gulf Coast LNG pathway. Within this, Tourmaline entered into a long-term arrangement with Cheniere Energy Inc. This means that Tourmaline participates in the LNG business with full exposure to JKM (Japan Korea Marker) pricing. This pricing is much higher than North American pricing.
Also, Tourmaline will benefit from the start-up of LNG Canada, which is expected in 2025. This will drive strong demand for natural gas in the next few years. And Tourmaline is ready for this, as the company has many wells just waiting for the right time and natural gas price to be completed.
The bottom line
2025 is shaping up to be a good year for investing in your tax-free savings account. Here in this article, I reviewed two stocks that have the potential to have another great year in 2025. From artificial intelligence to liquified natural gas, these stocks are well-positioned to help you maximize your tax-free, TFSA returns.
