The artificial intelligence narrative has dominated Wall Street over the last three years, led by mega-cap companies such as Nvidia, Microsoft, Alphabet, and Broadcom. However, a few TSX tech stocks are flying under the radar while gaining traction in the AI segment.
In this article, I have identified two top Canadian AI stocks long-term investors could buy in 2026. Let’s see why.
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Is this TSX tech stock still undervalued?
Valued at a market cap of $52.4 billion, Celestica (TSX:CLS) provides enterprise-facing supply chain solutions. Celestica’s portfolio of products and services is sold to original equipment manufacturers, cloud-based service providers, including hyperscalers, and other companies across sectors.
The TSX stock has more than tripled over the past 12 months due to an acceleration in revenue and profit margins. Celestica delivered solid Q3 results driven by surging demand for AI data centre infrastructure. In Q3, it reported revenue of US$3.19 billion, up 28% year over year. Comparatively, adjusted earnings per share (EPS) soared 52% to US$1.58.
The standout performer was Celestica’s Connectivity and Cloud Solutions segment, which grew 43% as hyperscale customers aggressively deployed 800-gigabit Ethernet switches for AI workloads.
The company’s hyperscaler portfolio business generated US$1.4 billion in revenue, soaring 79% as multiple data center giants ramped production of advanced networking gear. Operating margins rose to a company record of 7.6%, driven by an improved product mix and operational leverage.
In 2025, it forecast revenue of US$12.2 billion, above the initial forecast of US$11.6 billion. Adjusted EPS estimates rose to US$5.70 at the midpoint, representing an annual growth rate of 52%.
In 2026, Celestica projects revenue to reach US$16 billion, operating margins of 7.8%, and EPS of US$8.20. The bullish outlook stems from multiple converging factors. Celestica has secured market-leading positions in high-bandwidth Ethernet switching, claiming 41% share of total ports shipped across 200-gig, 400-gig, and 800-gig platforms.
The company is already ramping up 1.6-terabit switches and investing heavily in 3.2-terabit technology for future deployment. It is also expanding manufacturing capacity in Texas and Thailand to support hyperscaler demand through 2028.
With data centre capital expenditures forecast to exceed US$1 trillion by 2028 and AI infrastructure spending showing no signs of slowing, Celestica appears well-positioned to maintain its 40% annual growth trajectory in the coming years while continuing to improve profitability.
Analysts tracking the AI stock forecast EPS to grow from US$3.88 in 2024 to US$11.81 in 2027. Given consensus price targets, CLS stock trades at a 21% discount in January 2026.
Is this Canadian AI stock a good buy?
Computer Modelling Group (TSX:CMG) is a Calgary-based software and consulting company specializing in reservoir simulation and seismic interpretation solutions for the oil and gas industry.
Computer Modelling Group navigated a challenging quarter amid energy market volatility and weak commodity prices, which pressured customer spending.
In fiscal Q2 (ended in September), CMG reported revenue of $30.2 million, an increase of 2% year over year. Notably, organic revenue declined 17%, offset by recent acquisitions. It ended Q2 with $20.7 million in annual recurring revenue, up 13% year over year.
The company’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) fell 25% to $7.4 million as margins compressed to 25% from 34% over the past year.
Customers extended sales cycles and delayed purchasing decisions amid uncertain oil and gas market conditions. The company has been actively pursuing acquisitions to diversify its business, completing its third major deal during the quarter with SeisWare International to strengthen its seismic interpretation offerings.
Management also secured a significant multi-year licensing agreement with Shell, announced in November, covering the company’s full simulation suite, including CoFlow software.
Looking ahead, CMG expects revenue to pick up in the second half as seasonal contract renewals kick in. The company anticipates organic recurring revenue will return to growth in the fourth quarter and remain positive through fiscal 2027.
CMG is projected to end fiscal 2030 with free cash flow of $86 million, up from $21 million in 2026. If the tech stock is priced 10 times forward FCF, it could double over the next four years.
