Hey, Silicon Valley: Canadian Tech Stocks Just Delivered a 981% Average Return

The 2026 TSX30 list features five Canadian technology companies whose average return reached an extraordinary 981%.

Key Points
  • Top Canadian tech stocks posted an average 981% three-year return, with Celestica leading at 2,590%.
  • The gains reflect rising demand for AI infrastructure, space technology, defence, aerospace and satellite communications.
  • Despite their sharp rallies, these Canadian tech stocks offer value and significant growth.

Investors hunting for the next big technology trade opportunity may look beyond Silicon Valley. Some of the most explosive technology gains are coming from Canada.

The 2026 TSX30, the Toronto Stock Exchange’s annual ranking of its 30 strongest-performing stocks based on three-year dividend-adjusted share-price performance, features five Canadian technology companies whose average return reached an extraordinary 981%.

These aren’t conventional Silicon Valley software names. Instead, they operate across artificial intelligence (AI) infrastructure, space technology, aerospace, defence, satellite communications and digital infrastructure—areas that could become increasingly important as corporations and governments pour capital into next-generation technology.

technology moves fast

Source: Getty Images

Celestica leads the pack

At the top of the list is Celestica (TSX: CLS), whose shares gained an extraordinary 2,590% over the three years. The data centre infrastructure and advanced technology solutions provider is benefitting from strong AI infrastructure demand.

Celestica’s Connectivity & Cloud Solutions (CCS) business has contributed significantly to this growth. The segment provides a wide range of infrastructure technologies, including high-speed networking equipment, server platforms, data centre interconnect systems, enterprise storage solutions, and edge computing infrastructure. These products are seeing strong demand as businesses scale AI workloads and need more computing and networking capacity.

Celestica’s performance highlights a broader trend within the AI industry. The surge in AI adoption is generating a significant capital investment cycle that extends well beyond companies developing AI models. It is also creating substantial opportunities for technology providers building the hardware, connectivity, and data centre infrastructure required to run those systems.

Beyond Celestica, Hut 8 Corp. (TSX: HUT) delivered a 645% return during the same period. The company’s strategic shift from cryptocurrency mining to AI-focused infrastructure has emerged as a key driver of its growth.

At the same time, MDA Space (TSX: MDA) posted a three-year return of 617%, reflecting increasing demand for its space technology and satellite infrastructure.  Firan Technology Group Corporation (TSX: FTG), an aerospace and electronics manufacturer, gained 577%, driven by strong demand and record order bookings.

Telesat Corporation (TSX: TSAT), meanwhile, gained 475% over the three years, reflecting the strong demand for satellite communications and related infrastructure.

Don’t chase the chart: Which Canadian tech stocks still offer value

While these Canadian tech companies have solid fundamentals, investors should be cautious about chasing them after extraordinary share price gains. Stocks that have gained 475%, 645%, or even 2,590% are not automatically a good investment today.

While the rally has driven their valuations higher, a few of them still offer compelling value. For instance, Celestica stock looks attractive because its valuation remains reasonable compared with its growth outlook. Increasing demand for 800G networking, the shift toward 1.6-terabit technology, stronger enterprise storage spending, and continued investment from large cloud companies could help drive future earnings.

At around 17.5 times forward earnings, Celestica still offers value. Its earnings per share are expected to nearly double in 2026, followed by another year of double-digit growth in 2027.

MDA Space is another company worth considering after its recent share price decline. The company operates across several areas, including satellite systems, robotics, and geointelligence. This diversification gives it multiple opportunities for future growth.

Higher defence spending, government-backed space programs, and growing demand for satellite connectivity and intelligence services provide a strong base for growth. MDA Space also has a significant backlog, a healthy project pipeline, and strategic acquisitions that could help it continue growing earnings and cash flow.

The bottom line

The key takeaway is not that investors should abandon U.S. technology stocks, but that the technology investment opportunity is becoming far broader than Silicon Valley.

Canada’s technology sector is producing companies with exposure to some of the world’s most important long-term spending themes, including AI, digital infrastructure, aerospace, defence, satellite communications and space technology.

While many Canadian technology stocks have already delivered substantial gains, Celestica and MDA Space remain worth considering given their strong growth prospects and relatively attractive valuations.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Firan Technology Group. The Motley Fool recommends Celestica and MDA Space. The Motley Fool has a disclosure policy.

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