Artificial Intelligence (AI) stocks continue to be some of the most prominent names in stock markets worldwide. AI has become important in plenty of aspects of our lives. Many of us use ChatGPT daily for help with an immeasurable number of things, but that’s not where the utility of AI technology ends. In fact, that is only a small part of it.
AI stocks are companies heavily invested in the technology, from developing solutions powered by AI to innovating existing offerings with AI integration to make them better than ever before. It comes as no surprise that Nvidia (NASDAQ: NVDA) has become so popular among investors. It is now one of the biggest stocks in the world.
Considering the levels it is at right now, many investors might feel bad about not hopping aboard the bandwagon at the right time to capture all the capital gains. Fortunately, there are other places you can look. Today, we will look at some of the top Canadian tech stocks involved with AI that you can consider for your self-directed investment portfolio.
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Celestica
Celestica Inc. (TSX: CLS) is a $38.5 billion market-cap Canadian tech company that offers AI-powered solutions for several industries. The company designs and manufactures supply chain solutions. It has been servicing the AI boom by providing the right hardware solutions. The AI sector is growing rapidly and Celestica has the right kind of exposure to it.
The rising AI adoption and demand for computing capacity have made Celestica a target for hyperscalers. Companies wanting to expand AI-ready capabilities and raise their investments in data centers need companies like Celestica to fulfill demand. Celestica is also increasing innovations in AI-powered products to meet the growing demand. I am very bullish on Celestica stock, despite the risks that come with it, like with any other high-growth stock.
WELL Health Technologies
WELL Health Technologies Corp. (TSX: WELL) is another innovator that is also capitalizing on growing AI demand. WELL Health is a $1.3 billion market-cap owner and operator of a portfolio of primary health clinics across North America. The company has been innovating tech-based solutions for the healthcare industry, a niche which already helped it stand apart. Now, it is accelerating the use of AI in the healthcare space.
Healthcare providers will need to stay on top of the latest AI-powered innovations in the field to continue improving systems and patient outcomes. WELL Health Technologies is well-positioned to meet the demand. The kind of cash flows and profitability that have accompanied its revenue increase over the years position WELL Health to grow further and drive more growth for shareholders in the coming years.
Foolish takeaway
Investing in high-growth stocks can deliver substantial upside in the long run. If you want to protect the capital gains from taxes, you can consider allocating some of the contribution room in your Tax-Free Savings Account (TFSA) to the shares of high-growth TSX stocks. This way, you can enjoy the long-term returns without incurring taxes on the profits you make through capital gains.
