2 Canadian AI Stocks Poised for Significant Gains

These Canadian stocks are well-positioned to capitalize on accelerating AI infrastructure spending and deliver solid gains.

Key Points
  • The AI boom is driving massive investment in data centres, cloud infrastructure, networking, and power systems, creating long-term growth opportunities.
  • Celestica is benefiting from surging demand for AI infrastructure, with strong revenue growth fueled by its cloud and networking hardware business.
  • Hammond Power Solutions is positioned to gain from rising electricity demand and expanding AI data centres that require reliable power distribution equipment.

The artificial intelligence (AI) boom is still in its early innings, and the companies building the infrastructure behind it could be among the biggest winners over the next decade. As demand for AI-powered applications accelerates, businesses around the world are racing to secure the computing power, cloud capacity, and data storage needed to support this transformation.

Over the past year, investor enthusiasm around AI has pushed many technology and infrastructure stocks sharply higher. Yet the broader opportunity may still be far from fully realized. Major technology firms and hyperscalers continue to pour billions into expanding their AI ecosystems, investing heavily in advanced semiconductors, networking systems, data centres, and power solutions to keep pace with rising demand.

Against this backdrop, here are two Canadian AI stocks poised for significant gains.

Data center woman holding laptop

Source: Getty Images

AI stock #1: Celestica

Celestica (TSX: CLS) is one of the top Canadian stocks to capitalize on the AI boom. While it is not a pure-play AI company, it supplies the infrastructure that powers modern AI systems.

As tech giants continue spending billions on AI data centres, cloud computing, and high-speed networking, Celestica is emerging as a major beneficiary. Its Connectivity & Cloud Solutions (CCS) division provides the advanced hardware needed to support modern AI workloads, including networking switches, servers, storage systems, and edge computing platforms, and is seeing strong growth.

The company’s recent financial results highlight this momentum. In the first quarter of 2026, revenue climbed 53% year over year to $4.1 billion, while adjusted earnings per share (EPS) jumped 80% to $2.16. The CCS division generated $3.2 billion in revenue, up 76% from a year earlier, and contributed about 80% of total company sales. Enterprise revenue more than doubled, reflecting the rapid adoption of AI infrastructure.

As AI models grow more advanced, demand for high-speed networking infrastructure is expected to remain strong, supporting Celestica’s growth.

Celestica expects second-quarter revenue growth of roughly 49% and has raised its full-year 2026 outlook to $19 billion in revenue and adjusted EPS of $10.15.

With demand for AI data centre infrastructure remaining robust, Celestica has significant room for growth, which should support its stock price rally.

AI stock #2: Hammond Power Solutions

Hammond Power Solutions (TSX: HPS.A) may not be a pure-play AI stock, but it is one of the top beneficiaries of the AI boom. As AI drives an unprecedented surge in electricity consumption, companies in power infrastructure are seeing significant long-term demand for their products, and Hammond Power is one of them.

The company produces dry-type transformers, power-quality systems, and magnetic components that support modern electrical networks. As hyperscale data centres expand rapidly to handle rising AI workloads, demand for reliable power distribution equipment has surged. Hammond Power is already benefiting from this shift.

Hammond Power entered 2026 with strong business momentum, driven by solid demand across multiple industries and increasing activity from data centre customers. Its growing manufacturing capacity and efficient operations have further strengthened its competitive position. In the first quarter, backlog rose 4.1% sequentially and jumped 94.6% year over year, providing strong revenue visibility and supporting expansion efforts.

Hammond Power is also benefiting from broader industry trends, including renewable energy investment, grid modernization, electrification, and infrastructure development. These trends are expected to support long-term demand for power equipment.

In addition, the company is pursuing growth through acquisitions and expansion initiatives. Its recent acquisition of AEG Power Solutions is expected to strengthen its presence in industrial power electronics and energy transition markets while expanding its customer base and geographic reach.

As electricity demand and AI infrastructure spending continue to rise, Hammond Power Solutions is well-positioned to deliver significant gains.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

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