The artificial intelligence (AI) market is already massive, and its growth shows no signs of slowing down. As investment in AI infrastructure surges, Canadian companies that provide AI-related services and technologies are poised for substantial growth, making them attractive opportunities for investors seeking massive returns. Against this background, here are two Canadian AI stocks poised for significant gains.
Celestica stock
Celestica (TSX:CLS) is one of the top Canadian AI stocks poised to deliver significant gains over time. This leading design, manufacturing, hardware platform, and supply chain solutions provider is benefitting from solid customer demand led by AI-driven data centre investments. Celestica delivered impressive financials over the past year thanks to the AI-led tailwinds, which significantly boosted its share price.
Despite the recent pullback due to the macro uncertainty, Celestica stock is still up over 103% in one year. Moreover, this Canadian AI stock has gained nearly 790% in three years.
While these gains are remarkable, the company’s growth story is far from over. Its top line will likely grow at a solid pace, driven by robust demand from Hyperscaler customers in its Connectivity & Cloud Solutions (CCS) segment, mainly for its networking products within the Hardware Platform Solutions (HPS) business. Further, higher sales will enable the company to drive margins and will support its share price.
Celestica is already seeing strong sales of its 400G networking switches, and as it rolls out next-generation 800G switches, this momentum is set to accelerate. Further, the increased AI adoption led by lower training costs will fuel demand for high-bandwidth, low-latency networking hardware, which could further drive its financials and strengthen its competitive position.
The company recently announced two new customer program wins. These deals will enable Celestica to showcase its AI system design capabilities and strengthen its position as a leading AI infrastructure solutions provider.
Overall, Celestica is poised to capitalize on the growing investments in AI infrastructure and deliver solid financial performance, which will drive its stock price significantly higher.
CGI stock
CGI (TSX:GIB.A) is one of the leading IT and business consulting services firms. The company is investing significantly to expand its AI capabilities, enhance client solutions, boost operational efficiencies, and drive long-term growth.
CGI is integrating AI and Generative AI (GenAI) into its suite of proprietary solutions, refining its consulting methodologies, and enhancing managed services. The company is also collaborating with clients to develop industry-specific AI use cases, establish AI factories, and optimize user experiences. These initiatives are designed to generate significant business value across various sectors, from healthcare to finance and public services.
Thanks to its efforts to integrate AI and GenAI technologies into its engagements, its pipeline of AI opportunities continues to grow. The company has secured substantial client commitments by positioning itself as a leading advisor in digital transformation, particularly in AI-driven solutions. This focus has translated into impressive bookings exceeding $4.1 billion. This represents a book-to-bill ratio of 109.8% and 107.8% on a trailing 12-month (TTM) basis. Moreover, the company’s backlog has surged to $29.76 billion as of December 31, 2024.
Beyond AI, CGI is accelerating its mergers and acquisitions strategy, expanding its client base and technological expertise to deliver solid growth. This strategic approach, combined with strong financial performance and growing demand for AI solutions, positions CGI for sustainable long-term growth.
