Shopify (TSX: SHOP) recently reclaimed the top spot on the TSX for the largest publicly traded company by market capitalization. For many who remember the bull rally by tech stocks, this must have been a good reminder of how exciting investing in tech stocks can be. August 7, 2025, saw the tech stock topple Royal Bank of Canada, but ceded the position not long after. As of September 10, 2025, RBC leads again.
While movement from Shopify certainly seems exciting, Canadian investors interested in tech stocks might have better investments to consider. Today, I will discuss two TSX stocks that can be a more suitable fit in your self-directed portfolio for significant long-term gains.
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Topicus.com
Topicus.com (TSXV: TOI) is a spin-off from Constellation Software, following the parent company’s model of acquiring various vertical-specific software businesses with healthy cash flow from maintenance. The company acquires businesses across diverse verticals, with each having strong tech spending that gives Topicus.com the ability to further its success and reap the benefits. Focused more on European markets, the $14.87 billion market-cap stock looks well-positioned to follow the steps of its parent company.
As of this writing, TOI stock trades for $180.66 per share, up by 63.02% from its 52-week low. The company grows its share price by reinvesting free cash flow to acquire software companies. By targeting already successful companies, it has a solid business model that virtually guarantees success in a typically volatile tech industry. It can be a steal at current levels for investors seeking a bargain.
Descartes Systems
Descartes Systems Group (TSX: DSG) is a $12.74 billion market capitalization software company that services the global shipping industry. The company offers software solutions that let users in the shipping industry communicate seamlessly with one another. The company provides crucial logistics and supply chain software solutions that enable freight to get from one place to another. This is a highly sought-after solution at a time when the world is facing significant supply chain issues.
The company has high recurring revenues, and its business model allows for strong profit margins. The company has been generating plenty of free cash flow over the years, which it invests in clever acquisitions. As global trade tensions create more demand for supply chain solutions, DSG stock investors might be looking at plenty of upside in the coming years.
Foolish takeaway
While suitable alternatives to SHOP, TOI stock, and DSG stock still have a long way to go to be able to compete with the likes of RBC in terms of market capitalization. Shopify might not be the most attractive in terms of total returns at current levels. However, the stock has the potential to deliver substantial growth for investors with a long investment horizon. It might be worth allocating a portion of your investment capital to taking up a good position in the tech stock.
