Buying opportunities have emerged in 2025, despite the tariff chaos. The TSX’s high-growth technology sector, in particular, is up by 8.31% year to date following a +22.02% surge in the last three months. Canada’s artificial intelligence (AI) king, Celestica, leads the pack, although the $219.79 stock price is quite steep.
However, for investors on a budget, Coveo Solutions (TSX:CVO) and Sylogist Ltd. (TSX:SYZ) offer compelling, more affordable opportunities. They are the smartest tech stocks to buy with $200 right now.
Experimentation to adoption
Coveo Solutions has defied the tariff-induced headwinds. At only $8.29 per share, the year-to-date gain is nearly 30% due to the almost 50% advance over three months. The $821 million company caters to high-tech industries and various sectors, including financial services, healthcare, and telecommunications.
The Coveo AI-Relevance Platform enhances AI-search and generative experiences, helping large enterprises manage massive volumes of content and products. Moreover, the platform’s multi-tenant Software-as-a-Service (SaaS) solution provides a unified and secure way to search for contextually relevant content.
In fiscal 2025 (12 months ending March 31, 2025), total revenue increased 6% to US$133.3 million versus fiscal 2025. Coveo’s net loss thinned 42% year over year to US$13.8 million, while cash flow from operating activities climbed 164% to US$11.1 million from a year ago.
Louis Têtu, Coveo’s executive chairman, notes that companies are recognizing the importance of AI Search to their AI strategies. “With strong bookings momentum seen in the past few quarters, we are now well-positioned to deliver a re-acceleration of growth.” Also, the new business bookings performance in the fourth quarter (Q4) of fiscal 2025 was the best in the company’s history.
“FY25 would see a market inflecting, with our customers moving from experimentation to adoption, and our results provide clear evidence of this,” Têtu added. Customers are looking for tangible results and a clear return on investment (ROI) from their AI investments. Coveo’s platform delivers what they need.
For fiscal 2026, management expects revenue to be between US$147.5 million and US$150.5 million. Coveo forecasts about $10 million in positive operating cash flow, with Generative AI and agentic as key opportunities ahead. Based on market analysts’ 12-month price targets for the growth stock, the upside potential ranges from 17.4% ($9.73) to 55.6% ($12.90).
Accelerating SaaS revenue
Sylogist has growth potential in the growing SaaS market. It caters to the public sector, providing Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), fundraising, education administration, and payments solutions. If you invest today, SYZ trades at $9.69 per share (+9.48% year to date) and pays a modest 0.46% dividend.
The $226.65 million public-sector SaaS company’s primary objective is to help non-profit organizations, governments, and educational institutions modernize their systems and improve operations. Sylogist leverages Microsoft Dynamics 365 Business Central to offer specialized ERP and CRM solutions.
In Q1 2025, both SaaS subscription and annual recurring revenue (ARR) grew 15% year over year to $7.8 million and $31.4 million, respectively. Its president and CEO, Bill Wood, said Sylogist’s Q1 performance was right on plan. “We’re excited about the ongoing acceleration of our high-margin SaaS revenue and the operating leverage and scalability that lie ahead,” he added.
Outsized gains on the horizon
Growth investors should take advantage of the relatively cheap prices of Coveo and Sylogist. Both tech stocks could deliver outsized gains, similar to those of Celestica.
