Artificial intelligence stocks have become some of the market’s hottest investments over the last two years. A lot of companies are jumping on the AI trend, but some are already playing an important role in the technology and infrastructure behind it.
Companies linked to the AI boom are expected to see explosive demand in the coming years as businesses race to build more powerful data centres and digital systems. That’s why I expect them to deliver impressive returns. One such AI stock that stands out on the TSX right now is Celestica (TSX: CLS).
In this article, I’ll explain why this Canadian tech company could remain one of the best artificial intelligence investments to consider in May 2026.
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Why Celestica stock stands out in the AI boom
If you don’t know it already, Celestica has emerged as one of the biggest winners in the Canadian stock market over the last few years. The company specializes in designing, manufacturing, and supplying advanced hardware platforms and supply chain solutions for high-growth technology markets.
After rallying 230% over the last 12 months, CLS stock currently trades at $523.95 per share with a market cap of $60.2 billion. This rally clearly reflects the market’s growing confidence in its fundamentals and AI-related growth opportunities.
Its focus on AI infrastructure is driving outstanding growth
The company’s recent financial performance helps explain why investors have become so bullish. In the first quarter of 2026, Celestica posted impressive 53% year-over-year (YoY) growth in its revenue to US$4.1 billion. Its profitability also improved significantly, with its adjusted quarterly operating margin rising to 8% from 7.1% a year earlier.
A major driver behind this growth has been its Connectivity & Cloud Solutions segment. Revenue from this business jumped 76% YoY last quarter to US$3.2 billion as demand for AI infrastructure and cloud networking solutions continued to accelerate.
Interestingly, Celestica has become increasingly important in the fast-growing AI data centre market. Its expertise in networking hardware and infrastructure solutions has helped position the company as a critical supplier for hyperscale customers building next-generation AI systems.
One of the company’s most notable recent developments was winning a co-packaged optics switch program with a hyperscaler customer. This project is expected to ramp up production in 2027 and will use advanced 1.6-terabit switch silicon, alongside liquid-cooling technology designed for large-scale AI networks.
Strong guidance and expanding AI opportunities
Beyond growth, Celestica has also remained disciplined financially. The company recently expanded its credit facility to roughly US$2.5 billion, giving it additional flexibility to support future investments and growth initiatives.
Its outlook also remains highly optimistic as Celestica recently raised its full-year 2026 guidance and now expects annual revenue to reach US$19 billion alongside adjusted earnings of US$10.15 per share. The company’s improving visibility into 2027 demand further strengthens confidence in its long-term growth trajectory.
While its Advanced Technology Solutions business remained relatively stable from a revenue perspective, profitability in this segment improved as well. This diversification across aerospace, industrial, healthcare technology, and capital equipment markets helps reduce dependence on any single business area.
Why this Canadian AI stock could still have more upside
Clearly, the biggest long-term opportunity for Celestica still appears to be AI and cloud computing infrastructure. As AI adoption continues to expand globally, demand for advanced networking systems, data centre hardware, and high-performance computing infrastructure could remain strong for years.
Given Celestica’s strong financial momentum, growing role in AI infrastructure, and expanding profitability, the stock could continue rewarding long-term investors despite its already massive rally.
