This AI Stock is the Real Deal for Canadian Investors

The TSX’s AI king, a cash-generating machine beyond earnings, is the “real deal” for Canadian investors.

Key Points
  • Celestica (TSX:CLS) is positioned as the TSX’s AI infrastructure leader—partnering with hyperscalers (Amazon, Google, Microsoft), dominating the Connectivity & Cloud Solutions market, and delivering massive three‑year returns (around +2,256%).
  • Backed by strong fundamentals—net income nearly doubled to US$565M (9 months of 2025), FCF guidance rising toward US$500M in 2026, and an active buyback program—Celestica looks like a “real‑deal” AI investment ahead of its full‑year results.
  • 5 stocks our experts like better than [Celestica] >

Artificial intelligence (AI) is still the buzz in 2026, although you can easily spot wannabes that mention AI in marketing pitches and earnings calls with zero AI revenues to show. But for Canadian investors, Celestica (TSX: CLS) is the real deal.

While this Canadian AI king is not a trillion-dollar chipmaker like NVIDIA in the U.S., its returns dwarf those of the American counterpart. At $415.53 per share, Celestica’s total three-year return is a staggering plus-2,257%. In comparison, NVDA trades at US$187.67 per share (approximately C$257.59) and has delivered a gain of plus-878.8% over the same period.

chip glows with a blue AI

Source: Getty Images

TSX’s top growth stock

Celestica is not only the AI leader but also TSX’s top growth stock. CLS achieved back-to-back wins in the TSX30—the flagship program recognizing the 30 top-performing stocks over a three-year period. After placing 2nd in 2024 with a three-year dividend-adjusted share price performance of plus-706%, it secured the top spot in 2025 with an astronomical appreciation of plus-1,5995.

The consecutive high-profile rankings indicate the strong global demand for AI infrastructure. More importantly, it proves that Celestica has successfully delivered industry-leading shareholder value, far outpacing even the largest names in the AI space.

Infrastructure powerhouse

The $47.8 billion company is at the forefront of the AI revolution. Celestica has become an infrastructure powerhouse, building high-speed networking switches that can handle the massive data loads.

Today, CLS is a direct hardware play and an important partner for “hyperscalers” such as Amazon, Alphabet, and Microsoft. The investments of these mega-cap tech titans drive demand for Celestica’s services. Facebook parent Meta Platforms taps Celestica for data infrastructure. 

In addition to hyperscalers, Celestica’s comprehensive portfolio caters to clients across various sectors, including financial services, automotive, and healthcare, which generate large volumes of data while digitalizing operations. The AI data centre is Celestica’s largest and fastest-growing market.

Financial performance

Many investors fear an AI bubble. Celestica is far from speculative, given its balance sheet, financial performance, and visible profitability in the coming years. By the time this article comes out, the company will have released its full-year 2025 results.

Meanwhile, in the first three quarters of 2025 (nine months ending September 30, 2025), net income rose nearly 100% year-over-year to US$565 million. Management expects to end the year with free cash flow (FCF) of US$425 million and targets an FCF of US$500 million in 2026.

Celestica has ample liquidity to continue R&D activities. Also, its 2025–2026 buyback program is in place and will end on November 2, 2026, completing its buybacks to enhance shareholder value. The company can buy back up to 221,734 shares per day.

Real deal

Celestica plays a critical role in the global AI supply chain and dominates the high-growth Connectivity & Cloud Solutions (CCS) market. Clearly, Celestica is a “real deal,” not to mention a cash-generating machine beyond earnings. Explosive growth is on the horizon for this Canadian AI king. You might want to take a position to capitalize on the upward momentum that will follow after the earnings release.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet, Amazon, Celestica, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

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