Artificial Intelligence (AI) is driving substantial investment in data centres. As AI technologies become increasingly sophisticated and widely adopted, technology companies are expanding their data centre infrastructure to accommodate rising computational demands.
Notably, hyperscalers have committed hundreds of billions of dollars to AI infrastructure, with data centres accounting for a substantial share of that spending. This surge in capital investment is creating strong growth prospects for businesses that provide the equipment, technology, and services required to build and operate these facilities.
In this context, here is one TSX stock set to make a fortune from Canada’s data centre buildout.
Source: Getty Images
Celestica to capitalize on the AI spending boom
Celestica (TSX: CLS) is one of Canada’s leading companies, positioned to benefit from the data centre buildout. As hyperscalers and enterprises expand their AI capabilities, demand for Celestica’s advanced networking and data centre solutions continues to accelerate.
Celestica’s Connectivity & Cloud Solutions (CCS) division remains the primary growth catalyst. The CCS business supplies a broad portfolio of high-performance hardware designed for next-generation data centres. Its offerings include networking switches, server platforms, data centre interconnect technologies, edge computing systems, and enterprise storage solutions that help customers build the infrastructure needed to support AI workloads.
A key competitive advantage is Celestica’s leadership in 800G high-speed interconnect technology, which enables the ultra-fast, low-latency networking required for modern AI clusters. Its switching, computing, and storage solutions position Celestica well to benefit from the rapid expansion of AI data centres.
Although Celestica shares have delivered exceptional gains over the past three years, the company’s growth story appears far from over. Management expects to begin mass production of its next-generation 1.6T switching platforms, while its networking demand pipeline remains exceptionally strong, which will support Celestica stock.
Celestica kicked off 2026 on a solid note
Celestica started 2026 with an impressive first quarter. Revenue jumped 53% year over year to $4.1 billion, led by its CCS business. Higher margins helped adjusted EPS surge 80% to $2.16.
Notably, growth was broad-based, with communications revenue up 69% on strong demand for 800G networking switches, while enterprise revenue more than doubled as companies expanded AI and machine learning infrastructure.
With sustained AI-driven demand, Celestica is well-positioned to capitalize on the data centre buildout and deliver solid growth.
Celestica’s outlook supports the investment case
Celestica stock has delivered exceptional gains, and its solid outlook indicates significant upside potential. It expects revenue between $4.15 billion and $4.45 billion for Q2, representing approximately 49% year-over-year growth at the midpoint. Adjusted earnings are projected to rise 61%, while the operating margin is expected to expand by 60 basis points, reflecting higher sales and improving profitability.
Within the CCS segment, communications revenue is expected to increase roughly 50% as customers accelerate deployments of high-speed 800G and 400G networking switches to support next-generation AI data centres. Meanwhile, enterprise revenue is forecast to surge by about 130%, driven by customers expanding their AI and machine learning infrastructure and increasing storage capacity.
Celestica raised its full-year 2026 revenue guidance. Moreover, Celestica’s growth is expected to accelerate in 2027 as existing customer programs ramp up and AI infrastructure spending remains strong. The transition to mass production of 1.6T switch programs for two hyperscale customers is expected to provide an additional boost in the second half of the year. Meanwhile, new program wins have strengthened Celestica’s networking pipeline, providing greater revenue visibility through 2027 and 2028.
Overall, Celestica is set to make a fortune from Canada’s data centre buildout.
