The Only 2 AI Stocks You’ll Need for Long-Term Growth

Here are two top Canadian tech stocks that could help you benefit from surging demand for AI technology and infrastructure.

If you’re ignoring artificial intelligence (AI) just as many investors once ignored e-commerce and cloud computing in their early days, you might want to rethink that. AI isn’t just another tech trend, as it’s already changing the way businesses work, how we live and shop, and even how healthcare services are delivered. And while the AI buzz is loud, the real winners will be the companies building the tools, platforms, and infrastructure to integrate AI into everyday operations and workflows.

While you don’t need a dozen AI stocks in your portfolio, owning a few high-quality names with real-world applications and strong growth potential could make a significant difference over time. In this article, I’ll break down two AI-focused tech stocks that could power your portfolio’s growth for years to come.

A microchip in a circuit board powers artificial intelligence.

Source: Getty Images

Kinaxis stock

The first Canadian AI stock I’ve got my eye on right now is Kinaxis (TSX: KXS). This Ottawa-based tech company specializes in supply chain orchestration, helping global brands manage everything from long-term planning to real-time delivery with its AI-powered Maestro platform.

KXS stock currently trades at $156.63 per share with a market cap of $4.4 billion. While Kinaxis doesn’t pay a dividend, its exclusive focus on growth could pay off well.

In the fourth quarter of 2024, the Canadian tech firm’s total revenue grew by 11% YoY (year over year) to US$123.9 million, with its SaaS (software-as-a-service) sales jumping 17% from a year ago. On the profitability side, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped a solid 59% YoY, pushing the margin up to 25%. While it posted a net loss for the quarter due to one-time restructuring costs, its adjusted earnings remained positive.

Its push into next-gen AI tools currently sets Kinaxis apart from most of its peers. Notably, the company is rolling out agentic and generative AI features that make supply chain decisions faster and easier for its customers without requiring deep AI expertise. For investors looking to benefit from the real-world side of artificial intelligence, this stock could be a long-term winner.

Celestica stock

If you’re after the growth potential of the fast-growing AI sector, Celestica (TSX: CLS) is also worth a look. This Toronto-based tech firm builds design, hardware, and supply chain solutions for some of the world’s most innovative, large companies. Its products power everything from cloud infrastructure to next-gen AI systems.

Even after a recent pullback, CLS stock is still up nearly 96% over the past year, trading at $120.91 per share with a $14 billion market cap.

In the December 2024 quarter, Celestica posted a 19% YoY revenue growth to hit US$2.55 billion. It also registered its highest adjusted quarterly earnings ever at US$1.11 per share. At the same time, strong momentum in its Connectivity & Cloud Solutions segment helped it expand profit margins.

With surging demand for AI hardware, new hyperscaler deals and full-rack AI system wins, Celestica just raised its 2025 guidance. So, if you want to invest in the infrastructure side of AI, CLS might be one stock you don’t want to miss right now.

Fool contributor Jitendra Parashar has positions in Celestica and Kinaxis. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.

More on Tech Stocks

Printing canadian dollar bills on a print machine
Tech Stocks

I’d Keep Shopify for its 18% Free Cash Flow Margin

With an expanding 18% free cash flow margin and massive share buybacks, Shopify proves why it remains a top TSX…

Read more »

quantum computing is still in infancy
Tech Stocks

A Quantum Computing Stock Canadian Investors Can Buy Now

Looking for a quantum computing stock? D-Wave offers exposure to an emerging industry, with paying customers and plenty still to…

Read more »

ETF is short for exchange traded fund, a popular investment choice for Canadians
Tech Stocks

A Handful of Tech Giants Is Carrying Wall Street: Canadians Holding U.S. Index ETFs Should Know How Concentrated They Really Are

XQQ's top 10 holdings make up 46% of the fund. See how concentrated Canada's Nasdaq 100 ETF is and why…

Read more »

man makes the timeout gesture with his hands
Dividend Stocks

Why Dividend Cuts Happen and How to Spot the Warning Signs

Learn why dividend cuts happen and how to spot warning signs, using BCE and TELUS to examine cash flow, debt,…

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Nvidia Just Hit $5.8 Trillion: The Canadian Stock Riding the Same AI Wave

Celestica’s AI exposure is supported by operating results, while cash investment and valuation make the buying decision more demanding.

Read more »

man in bowtie poses with abacus
Tech Stocks

A Simple Way to Estimate Your Retirement Number

Here's how Canadian couples can calculate their retirement number in 2026.

Read more »

Thrilled women riding roller coaster at amusement park, enjoying fun outdoor activity.
Tech Stocks

Celestica Stock Has Been a Roller Coaster: What I’d Do With It Now

Despite near-term volatility risks, Celestica’s strong growth prospects could make it an attractive long-term investment for risk-tolerant investors.

Read more »

A chip in a circuit board says "AI"
Tech Stocks

Celestica’s Revenue Jumped 62%, and I Like the Stock’s Outlook

Given its strong financial performance, exposure to high-growth AI infrastructure opportunities, and reasonable valuation, Celestica remains an attractive buy for…

Read more »