While the artificial intelligence (AI) narrative is dominated by tech giants south of the border, several Canadian stocks are gaining traction in this highly disruptive market.
In this article, I have identified two of the best Canadian AI stocks you can buy in October 2025 to generate outsized returns. Let’s dive deeper.
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Celestica
Valued at a market cap of $39.4 billion, Celestica (TSX: CLS) stock has risen close to 400% in the last 12 months. Celestica offers comprehensive end-to-end supply chain solutions and manufacturing services to technology companies worldwide.
It designs, manufactures, and assembles electronics and hardware platforms across two main segments: Advanced Technology Solutions and Connectivity and Cloud Solutions.
Celestica serves original equipment manufacturers, cloud service providers, hyperscalers, and companies in aerospace, defence, industrial, healthcare technology, communications, and enterprise markets.
Celestica delivered exceptional second-quarter results driven by explosive demand for networking equipment from hyperscale customers building out AI data centre infrastructure. It reported revenue of $2.9 billion, a 21% increase year over year, while adjusted earnings grew 54% to $1.39 per share in Q2.
The Connectivity and Cloud Solutions segment experienced a 28% increase in sales, driven by hyperscaler orders for 400G and 800G networking switches.
Communications revenue surged 75% as multiple 800G programs ramped alongside continued strength in 400G demand. Management noted that 800G volumes reached parity with 400G in the quarter and now expects every major hyperscaler customer to deploy 800G switches.
Growth forecast
In 2025, Celestica forecasts revenue to increase by 20% to $11.6 billion, with adjusted EPS growth predicted at 42%. It also expects free cash flow to increase to $400 million in 2025, up from $261.4 million in 2024.
Celestica successfully brought up its first Tomahawk 6 system within days of receiving silicon samples in June, positioning the company for the launch of 1.6-terabyte switch programs in late 2026.
Analysts forecast that Celestica’s revenue will increase from $9.6 billion in 2024 to $16 billion by 2027. In this period, adjusted earnings are forecast to expand from $3.88 per share to $8.11 per share. If the tech stock is priced at 35 times forward earnings, it could gain 16% over the next 18 months.
Well Health
Valued at a market cap of $1.4 billion, Well Health (TSX: WELL) is a health-tech company. The Canadian stock has returned more than 3,300% to shareholders since its initial public offering in 2016. However, it also trades 44% below all-time highs, allowing you to buy the dip.
In Q2 2025, WELL Health reported record sales of $356.7 million, an increase of 57% year over year. Comparatively, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) more than tripled to $50 million.
WELL now operates 222 clinics with over 1,000 physicians serving more than one million patient visits quarterly for the first time. The company achieved 40% revenue growth and 76% EBITDA growth in Canada, while maintaining a strong organic growth rate of 25%.
Management showcased impressive capital allocation discipline, as it acquired 31 clinic groups for $280 million at an average multiple of 9.4 times EBITDA, then improved operations to push the implied multiple down to just 4.7 times through operational improvements.
WELL is accelerating its Canadian expansion timeline and targets $100 million in adjusted EBITDA by mid-2026 rather than year-end. Analysts forecast revenue to increase from $919.7 million in 2024 to $1.8 billion in 2029.
In this period, free cash flow is projected to increase to $177.5 million, compared to an outflow of $6.7 million. If the TSX stock is priced at 20 times forward FCF, it could surge 160% within the next four years.
