The artificial intelligence (AI) wave has sent a ripple effect across all tech stocks worldwide. Countries are racing towards AI supremacy. When DeepSeek beat ChatGPT, Nvidia shares nosedived. While the Nasdaq has some straightforward AI stocks, Canada has some tech stocks that have been reignited by AI investments.
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Canadian tech stocks that rallied
Over the last two years, electronics manufacturer Celestica (TSX:CLS) has made its shareholders wealthy, rising 920% since August 2023, beating Nvidia’s rally of 345% during the same time.
Not long ago, BlackBerry (TSX:BB) stock witnessed a 120% rally between December 2024 and February 14, 2025. BlackBerry’s rally was not sustainable, while Celestica’s rally has pushed it to a high valuation. Among the two, which is a better AI stock to buy right now?
Celestica and its AI potential
Electronics manufacturing was not quite an attractive business for investors before, as most of the manufacturing was outsourced to the East. Celestica got recognition when it started manufacturing servers and storage for AI and machine learning. In 2023, when ChatGPT created the urgency to build AI capability, all tech companies poured in billions to build data centres and networking capability.
Celestica was flooded with orders. Its revenue growth accelerated from 9.6% in 2023 to 20% and it expects to maintain this rate in 2025. Servers and storage are high-margin products. Hence, its earnings per share grew faster than revenue.
| Particulars | 2022 | 2023 | 2024 | 2025* |
| Revenue ($ billion) | 7.3 | 8 | 9.6 | 11.55 |
| YoY growth | 9.6% | 20.0% | 20.3% | |
| Adjusted EPS ($) | 1.94 | 2.46 | 3.88 | 5.5 |
| YoY growth | 26.8% | 57.7% | 41.8% |
And the way trade war and geopolitical conditions are shaping, North American manufacturing could revive. Celestica has a direct link to increasing investment in AI infrastructure. It is a stock you could consider buying. However, wait for a 20-30% seasonal dip in August and September before buying the stock.
The next wave of AI orders could send the stock to a new high, irrespective of high valuations, as the AI cyclicality is at its peak.
BlackBerry and its AI potential
The cybersecurity and Internet of Things software solutions provider BlackBerry plays an important role in the AI world. When AI is tapping into information and AI devices are working on the edge alongside humans, the need for secure communications is paramount. While BlackBerry has QNX software, its usage is largely limited to automotive.
The company has a baggage of years of losses, a weak go-to-market strategy, and a sluggish turnaround in a highly competitive space. It has undergone several management changes.
However, things have started to change for BlackBerry. BlackBerry reported its first profit in years in the first quarter of fiscal 2026 after selling its loss-making Cylance to Arctic Wolf. It is now focused on diversifying QNX to General Embedded Market applications, such as robotics, industrial automation, and medical devices and equipment. The realization of revenue from these orders is finally driving revenue towards growth.
As for its Secure Communications business, it is seeing a mixed response. Companies are moving their business to the cloud, while governments and agencies with high security needs are opting for BlackBerry’s Unified Endpoint Management.
Which is a better Canadian AI stock?
Celestica has the manufacturing capacity to tap into AI infrastructure investment. However, it does not have intellectual property that could differentiate it if competition increases. BlackBerry has the intellectual property, but poor execution is limiting its potential.
While both are tapping the AI opportunity, the robust execution of Celestica is driving its stock price, making it a better stock to tap the AI opportunity.
It would be wrong to rule out BlackBerry’s AI potential. Investors should look at its execution strategy. Once execution improves and BlackBerry can sustain that momentum, it could be a stock worth investing in.
