2 TSX Stocks That Could Give Your TFSA Returns a Meaningful Boost

Unlock the potential of your TFSA and discover how to maximize growth with strong investments and timely contributions.

Key Points
  • Micron Technology is experiencing significant growth driven by high memory demands from AI data centers, making it a compelling addition to a TFSA for potential long-term returns, though it comes with midcycle investment risks and volatility.
  • Ballard Power Systems is strengthening its commercial approach to hydrogen fuel cells and aims for positive cash flow by 2027, making it a promising TFSA stock for investors seeking growth from new technology adoption.

Many Canadians often realize the true wealth generation potential of a Tax-Free Savings Account (TFSA) later in life. The average TFSA balance of the 45–49 age group was $24,150 in 2023, even when the cumulative contribution room was $88,000. With an average unused contribution of $61,381, you still have time to boost your TFSA.

Staying invested in fundamentally strong stocks brings compounding returns. You cannot make up for the lost time, but a few fast-growing stocks can give your TFSA a meaningful boost.

chip glows with a blue AI

Source: Getty Images

Two TSX stocks to boost TFSA returns

Micron Technology (TSX:MU) stock has jumped 650% since April 2025 and shows no signs of slowing. This crazy rally mirrors that of Nvidia back in 2023. When analysts said Nvidia is too expensive after a 700% rally, there was a pause in growth, only for another 700% rally to follow. Micron is having an Nvidia-moment. The 2025–2027 period could become an historic growth cycle for this stock.

Memory chips are used in almost every device and in different forms. The dynamic random access memory (DRAM) that goes inside a desktop can’t be used in a laptop, mobile, server, or cloud network. All these platforms need memory just as they need electricity, but their forms are different.

Hyperscalers are pouring billions into building artificial intelligence (AI) data centres. While they have achieved desired results from less-powerful graphics processing units and processors, memory needs have no alternative. Processing large language models needs DRAM to access and process data and NAND to store them. High bandwidth memory (HBM) that goes into AI data centres is commanding high margins for Micron.

The HBM demand is so high that Micron and its two fellow memory chip makers are spending billions on building new facilities. The HBM has created a whole new memory chip category, like PC DRAM and mobile DRAM.

When will this cycle end? Analysts say the cycle will continue at least till mid-2026. But Micron sees no signs of slowing in 2026.

Is Micron a TFSA stock to own?

Buying midcycle has its risks. You are constantly worried about when the cycle will end. That makes the stock even more volatile around quarterly earnings as the numbers will drive the story forward. The fiscal 2026 first-quarter earnings in December sent the stock up 87% in little over a month. However, second-quarter earnings in March pulled the stock down 30% in less than 15 days. The dips are always steeper than rallies.

ParticularsQ4 FY25Q1 FY26Q2 FY26Q3 FY26*
Core Data Centre ($ Billions)$1.577$2.379$5.687$8.375
QoQ Growth51%139%47%
Contribution to Micron’s Revenue14%17%24%25%

What makes me bearish on Micron is its data centre revenue growth. It is the fastest-growing segment, with revenue growing 51% and then 140% sequentially in the last two fiscal quarters. It now accounts for 24% of Micron’s overall revenue. This contribution could continue to grow throughout 2026 as the company ramps up HBM4 production. The rate of growth will slow, but a higher contribution from high-margin products could see earnings growth and drive the next growth cycle.

Once the data centre cycle ends, the autonomous cars and then the humanoid cycle will come. Such cyclical rallies make Micron a TFSA stock to own.

Ballard Power Systems

Another TFSA stock to buy-and-forget is Ballard Power Systems (TSX: BLDP). It is strengthening its commercial reins to boost the adoption of hydrogen fuel cell technology. Like every technology stock, it could grow by leaps and bounds with widespread adoption of its products.

Ballard’s stock price has surged 77% since its 2025 earnings release, when it reported its first positive gross margin. The company has introduced a new product that aims to reduce the total cost of ownership and bring it on par with a diesel engine. It has a new CEO whose aim is to make the company cash flow positive by 2027 by optimizing working capital, improving pricing, controlling costs, and prioritizing markets.

A fundamental reset in 2026 could make Ballard attractive to value investors.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Micron Technology. The Motley Fool has a disclosure policy.

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