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1 Canadian Stock I’d Buy for the Data Centre Revolution

Celestica has already surged nearly 200%, but its role in building the physical backbone of AI data centres still looks powerful.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 23, 8:15 pm EDT

Key Points

Celestica gives investors exposure to AI and cloud infrastructure through data-centre hardware, systems design, and manufacturing.
Q1 2026 growth was explosive, with revenue up 53% and the cloud/connectivity segment up 76%.
After such a big run, any slowdown in customer spending, margins, or execution could hit the stock quickly.

The data centre boom isn’t slowing down. Artificial intelligence (AI) needs chips, power, and cooling. But it also needs the less glamorous parts of the buildout like design, manufacturing, supply chains, networking hardware, and systems that help cloud giants move faster. That’s where Celestica (TSX: CLS) comes in.

Data center servers IT workers — Source: Getty Images

CLS

This Canadian stock has already had a huge run, so investors shouldn’t treat it like a hidden bargain. In fact, right now shares have risen almost 200% in the last year alone as of writing.

Still, if I had to buy one Canadian stock for the data centre revolution, Celestica stock would sit near the top of my list. It gives investors direct exposure to the infrastructure behind AI, cloud computing, and next-generation networking without buying only a chip stock.

Celestica stock helps design, build, and supply advanced technology products for some of the world’s largest companies. Its business spans two main areas of Connectivity and Cloud Solutions, and Advanced Technology Solutions. The first one drives the data centre story, including cloud, communications, and hardware platform solutions. These are the kinds of products needed as companies race to expand AI capacity.

Into earnings

In the first quarter of 2026, Celestica stock reported revenue of US$4.1 billion, up 53% from the same period last year. Its Connectivity and Cloud Solutions segment grew even faster, with revenue up 76%. That segment now drives most of the company’s growth, thanks to demand from cloud and data centre customers.

Management also raised its full-year outlook. Celestica stock now expects 2026 revenue of US$19 billion and adjusted earnings per share (EPS) of US$10.15. Those are big numbers for a company many Canadian investors ignored for years. Celestica stock now looks like a serious player in the AI supply chain.

The appeal comes from its role in the buildout. When large cloud companies spend billions on data centres, they need more than chips or servers. They need complex systems, reliable manufacturing, and supply chains that can scale. Celestica stock can help customers move from design to production while handling the messy parts of global manufacturing.

Considerations

The main advantage is diversification. Celestica stock serves aerospace, defence, health technology, capital equipment, and industrial markets through its Advanced Technology Solutions segment. That won’t fully protect the stock if AI spending slows, but it gives the company more than one path for growth.

Still, investors need to be honest about risk. Celestica stock has climbed hard because expectations have climbed hard. A stock with this much momentum can fall quickly if growth slows, margins disappoint, or customers delay orders. Large cloud customers also hold a lot of power. If a few major buyers change spending plans, Celestica stock could feel it fast.

Margins deserve attention as well. Manufacturing and supply chain businesses can produce strong revenue growth, but investors should watch how much of that growth turns into profit and free cash flow. Celestica stock has improved profitability, but the market now expects execution to stay sharp.

Bottom line

For long-term investors, the broader setup looks compelling. Data centres aren’t a short-term fad. Cloud computing keeps expanding. AI needs more infrastructure, companies want faster networks, more efficient systems, and trusted partners that can help them scale.

Celestica stock sits right in that lane. It has momentum, real demand, and a Canadian listing that gives investors a homegrown way to buy into the data centre revolution. I wouldn’t back up the truck all at once after such a strong run. But if I wanted one Canadian stock tied to this massive buildout, Celestica stock would be the one I’d start buying on pullbacks.