The expansion of artificial intelligence (AI) is triggering one of the largest infrastructure spending cycles in technology history. As demand for AI computing power continues to surge, major technology companies are racing to build new data centres and expand existing capacity.
According to an analysis by Bridgewater Associates earlier this year, leading tech firms are expected to spend approximately $650 billion by 2026 on AI-related infrastructure, primarily in data centres. This massive investment is creating significant opportunities for companies that supply the critical components and services needed to support the AI ecosystem.
One Canadian company in particular appears well-positioned to capitalize on this multi-billion-dollar spending boom.
Let’s take a Canadian company set to make a fortune from the $650 billion data centre buildout.
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Top AI stock to capitalize on the spending boom
Celestica (TSX:CLS) is one of the top Canadian stocks to benefit from the AI infrastructure spending boom. As hyperscalers accelerate spending on AI infrastructure, demand for Celestica’s data centre and networking solutions continues to surge.
Its stock has grown by over 2,700% in three years and still has significant upside potential. Celestica’s growth is largely driven by its Connectivity & Cloud Solutions (CCS) segment, which serves communications and enterprise customers in fast-growing markets, including servers and storage. The segment offers high-performance networking switches, data centre interconnects, edge computing platforms, servers, and storage systems.
Strong demand for these products and solutions is driving Celestica’s financials, and the company is reporting solid growth. Its revenue rose 53% year over year to $4.1 billion in Q1 of 2026, driven by the CCS segment. Profitability also improved, with adjusted gross margin expanding by 30 basis points and operating margin rising 90 basis points. Celestica’s earnings per share (EPS) climbed 80% to $2.16.
Communications revenue grew 69%, supported by strong adoption of 800G networking switches among hyperscale customers. Enterprise revenue jumped 101%, driven by the rollout of next-generation AI and machine learning (AI/ML) infrastructure.
Within CCS, the Hardware Platform Solutions (HPS) business delivered $1.7 billion in revenue, up 63%, supported by multiple hyperscaler deployments of advanced networking solutions.
With robust revenue growth, expanding margins, and continued momentum in its CCS segment, the stock appears well-positioned to capitalize on the ongoing AI spending boom.
Celestica stock could sustain an upward trajectory
Celestica stock has gained significantly. At the same time, its strong growth prospects and solid outlook indicate that the rally is far from over. Celestica’s strong execution, expanding hyperscaler spending, and growing demand for advanced networking infrastructure position Celestica for exceptional growth in the years ahead.
For Q2, Celestica expects revenue of $4.15 billion to $4.45 billion, up about 49% year over year at the midpoint. Adjusted EPS is projected to climb 61%, while operating margin is expected to improve by 60 basis points.
Leading its growth will be the CCS segment again. Communications revenue is expected to increase by about 50%, driven by rising deployments of high-speed 800G and 400G networking switches supporting next-generation AI data centres. Further, enterprise revenue is forecast to surge approximately 130% as hyperscale customers expand AI and machine learning infrastructure and increase storage deployments.
Looking further ahead, Celestica raised its full-year 2026 revenue outlook to $19 billion from $17 billion, implying approximately 53% annual growth. Adjusted EPS outlook was also increased to $10.15, representing expected growth of 68%. Margins are likely to improve further as the company scales its operations.
Management expects revenue growth to accelerate again in 2027 as existing programs expand and AI-related demand continues to strengthen.
With hyperscalers investing aggressively in AI infrastructure and demand for advanced networking solutions showing no signs of slowing, Celestica appears well-positioned to capitalize on one of the technology sector’s $650 billion data centre buildouts.
