A Tax-Free Savings Account (TFSA) is one of the most effective tools for building long-term wealth. It allows investors to earn tax-free returns, including capital gains and dividends, on eligible investments up to the contribution limit. For 2026, the Canada Revenue Agency has set the annual TFSA contribution limit at $7,000. Meanwhile, Canadians who were at least 18 years old in 2009 and have never contributed to a TFSA have a cumulative contribution room of $109,000.
Another key advantage of a TFSA is that any amount withdrawn is added back to the contribution room on January 1 of the following year. As a result, generating strong investment returns can effectively increase the value of future contribution room. For example, if a high-growth stock doubles in value inside a TFSA, the larger withdrawal amount can be recontributed in a future year without triggering taxes.
However, this strategy also carries a higher risk. Growth stocks often have evolving business models and are more susceptible to market volatility. A sharp decline in their share prices, followed by a sale, can erode capital and permanently reduce the TFSA’s contribution room. Therefore, investors with a higher risk tolerance may consider the following two high-growth stocks, which I believe have the potential to deliver strong returns over the next three years while enhancing long-term TFSA wealth.
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Celestica
Celestica (TSX: CLS) provides critical data centre infrastructure and advanced manufacturing solutions that support artificial intelligence (AI), cloud computing, hybrid cloud, and other next-generation technologies. As businesses increasingly integrate AI into their core operations and governments and consumers adopt AI-powered applications, demand for high-performance computing infrastructure continues to rise. In response, hyperscale cloud providers are expanding their AI-ready data centre capacity, creating a strong long-term growth opportunity for Celestica.
To capitalize on this favourable backdrop, the company continues to invest in innovative product development and expand its manufacturing capabilities. It is also building a new production facility in Fort Worth, Texas, to support growing demand for next-generation data centre infrastructure and advanced technology solutions.
Reflecting these favourable industry trends and its growth initiatives, management expects revenue and adjusted earnings per share (EPS) to increase by 53.3% and 67.8%, respectively, this year. Backed by its strong financial performance, robust growth outlook, and exposure to one of the fastest-growing technology markets, I believe Celestica is well-positioned to deliver attractive long-term returns, making it an excellent addition to a TFSA.
MDA Space
Another growth stock that could help investors grow their TFSA over the long term is MDA Space (TSX: MDA), which provides advanced technologies and services across the global space economy. Growing demand for satellite-based connectivity and space robotics, rising government spending on national security and defence, and increasing investment in space exploration are creating a powerful long-term tailwind for the company.
According to the Satellites to be Built and Launched report, approximately 40,000 to 50,000 satellites could be launched between 2025 and 2034. Of this opportunity, around 20% to 30% falls within MDA Space’s addressable market, while roughly 5% is already reflected in its active sales pipeline. In total, the company has identified a project pipeline worth approximately $40 billion over the next five years, highlighting its significant long-term growth potential.
To strengthen its competitive position, MDA Space is expanding through strategic acquisitions. Last month, it completed the acquisition of Blue Canyon Technologies, a U.S.-based manufacturer of small spacecraft and satellite systems. The company is also working to acquire Collecte Localisation Satellites, a provider of AI-driven Earth observation services and satellite-based Internet of Things (IoT) solutions, thereby broadening its capabilities and customer offerings.
The company is also investing aggressively in future growth, with planned capital expenditures of $225 million to $275 million this year to expand production capacity and accelerate chip development initiatives. Supported by these investments, management expects revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to increase by 10% and 7%, respectively, this year. Given its robust project pipeline, strategic acquisitions, expanding production capabilities, and favourable industry trends, I believe MDA Space is well-positioned to sustain long-term growth and deliver attractive returns for investors.
