Investors flock to artificial intelligence (AI) for its massive return potential. As capital spending accelerates, on top of the billions mega-cap tech giants have already deployed, market interest continues to surge. However, the AI opportunity isn’t limited to software developers and chipmakers.
An attractive option today is 5N Plus (TSX: VNP), even though AI isn’t its core focus. This $2.4 billion Canadian firm is a key producer of specialty semiconductors and performance materials, including gallium and germanium. These ultra-pure materials are essential components for AI infrastructure, networking, and data centre power management.
The basic materials constituent is a back-to-back TSX30 winner, the flagship program for Canada’s 30 top-performing growth stocks. VNP ranked 7th in 2025 before climbing to 4th place in 2026, owing to plus-1,243% dividend-adjusted share price performance over three years. At $26.80 per share, the year-to-date gain is 51%. This Canadian stock with AI upside could soar higher.
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Revenue drivers
5N Plus derives revenue from two core business segments. The Specialty Semiconductors segment’s primary end markets include terrestrial renewable energy, space solar power and imaging and sensing. Its Performance Materials segment caters to the health and pharmaceutical sector.
The company expects strong demand in Specialty Semiconductors, supported by the underlying long-term growth trends. Accelerating AI adoption should likewise drive demand for solar energy. Outside of China, 5N Plus is the top global supplier of ultra-high-purity specialty semiconductor compounds for terrestrial renewable energy and space solar power applications.
5N Plus notes that the operating environment remains complex but remains firm on executing its growth strategy. The company intends to continue pursuing growth opportunities to strengthen its advanced materials value chain and maintain its leadership position in growing end markets.
Financial performance
In the first half of 2026, revenue and net earnings rose 30.4% and 50.9% year-over-year, respectively, to US$240.3 million and US$37.4 million. Notably, net debt in Q2 2026 fell nearly 53% to US$23.7 million from Q4 2025. As of June 30, 2026, total backlog was US$420 million or 35.5% higher than in Q2 2025.
Richard Perron, President and CEO of 5N Plus, said, “Our second-quarter and first-half results demonstrate the strength of demand across our strategic end markets and the resilience of the 5N+ business model, which continue to drive strong revenue and earnings growth despite a more challenging operating environment.”
The AI angle
5N Plus is well-positioned to capture demand from Western tech companies and defence contractors following China’s tightened export controls on several critical minerals. High-density AI chips and sensors depend heavily on gallium and germanium.
On September 5, 2026, the U.S. Department of War awarded 5N Plus a US$7.3 million contract to produce gallium arsenide (GaAs) components for defence applications at the company’s Utah facility.
Meanwhile, the largest but indirect AI exposure is utility-scale solar investment, driven by the increasing global electricity demand of AI data centres. The best part is that 5N Plus isn’t reliant on AI for growth. It will only amplify its end markets, notably solar/power infrastructure, advanced electronics and photonics. The business is still accelerating, with new strategic opportunities and the huge potential of specialty semiconductors. 5N Plus is on track to meet its full-year 2026 Adjusted EBITDA guidance of $100 million to $105 million.
