Canadians with $7,000 in unused Tax-Free Savings Account (TFSA) contribution room in 2026 have a valuable opportunity to build tax-free wealth, especially by owning high-quality Canadian growth stocks before their next phase of expansion.
Because every dollar earned inside a TFSA stays shielded from taxes, even a small investment today can compound into a surprisingly large portfolio over the long term. The strategy is to pick businesses with durable competitive advantages and exposure to powerful secular growth trends.
Here are two Canadian stocks that stand out right now for their long-term upside potential and ability to generate substantial tax-free returns inside a TFSA.
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Celestica stock
Celestica (TSX: CLS) is an exceptional stock to add to your TFSA portfolio. The Canadian technology company has become one of the market’s biggest winners in artificial intelligence (AI) infrastructure, with shares climbing roughly 233% over the past year. Yet despite that explosive rally, Celestica’s growth story may still be in its early stages.
Celestica operates behind the scenes of the AI boom, supplying critical infrastructure used in modern data centres and cloud networks. Its Connectivity & Cloud Solutions (CCS) division provides high-performance networking switches, data centre interconnect solutions, storage systems, servers, and edge computing platforms. The demand for its products remains solid, supporting its growth.
In the first quarter of 2026, Celestica’s revenue surged 53% year over year to $4.1 billion, while adjusted earnings per share (EPS) jumped 80% to $2.16. Revenue from the CCS segment soared 76% to $3.2 billion, accounting for roughly 80% of total company sales. Management pointed to particularly strong demand for 800G networking switches and next-generation AI infrastructure.
Meanwhile, the company’s Advanced Technology Solutions (ATS) segment remained relatively stable. Growth in HealthTech helped offset softer demand from aerospace and capital equipment markets, giving Celestica a more balanced business mix than many pure-play AI companies.
Importantly, management’s outlook suggests this momentum is far from over. Celestica recently raised its 2026 revenue forecast to $19 billion and expects adjusted EPS growth of approximately 68% this year. Further, its leadership anticipates stronger growth again in 2027 as global AI deployments continue expanding.
The current industry trends suggest that hyperscale cloud providers remain in an aggressive investment mode, particularly as global AI competition intensifies, which will support Celestica’s growth, making it a compelling investment opportunity on the TSX.
MDA Space stock
After nearly doubling in 2026, many investors would assume MDA Space (TSX: MDA) stock has already had its big run. However, it has significant room to run as the company is becoming one of the most strategically important players in the rapidly expanding global space economy.
MDA operates across several of the fastest-growing areas of space infrastructure, including satellite systems, robotics, and geointelligence. That gives the company exposure to multiple long-term growth trends simultaneously, including rising global data demand, national defence modernization, and next-generation space exploration.
Governments and private companies are racing to build new satellite networks to improve connectivity, strengthen communications, and support AI-driven data systems. At the same time, defence spending tied to surveillance, intelligence, and secure space-based communications continues to climb globally.
The company already possesses expertise in mission-critical space technologies, giving it a competitive advantage as demand accelerates.
At the end of the first quarter of 2026, MDA reported a $3.7 billion backlog, providing strong visibility into future revenue growth. Management stated that its long-term opportunity pipeline is about $40 billion across government and commercial markets, which provides a solid base for growth.
MDA’s robotics and space operations business is poised for solid growth. As the space industry expands toward lunar missions, commercial space stations, and eventually deep-space exploration, demand for advanced robotics and in-orbit servicing technologies could explode over the next decade.
Meanwhile, its Geointelligence division continues to gain traction as governments and enterprises increase spending on Earth observation analytics, surveillance, and defence intelligence. International expansion into Europe and Southeast Asia could further accelerate growth in the years ahead.
For long-term TFSA investors seeking exposure to one of the emerging industries of the next decade, this space stock may still be in launch mode.
