At the start of the year, there was an uproar when the Oracle of Omaha, Warren Buffett, announced his retirement. As he retired, all eyes were on his last investing strategies for the Berkshire Hathaway portfolio. As a renowned value investor, many people in the market follow his 48-stock portfolio. And one stock the value investor sold as he retired was Amazon (NASDAQ:AMZN).

Billionaires unload Amazon

There has been a lot of chatter around billionaires unloading Amazon stock for multiple reasons since Buffett’s exit. What interested me was the timing of two billionaire investors unloading Amazon stock.

First is the value investor Warren Buffett reducing his Amazon stock holdings by 77% in the fourth quarter of 2025 and exiting the stock altogether in the first quarter of 2026, according to its 13F Filings. While Buffett sold, active investor Stanley Druckenmiller’s Duquesne Family Office bought shares of Amazon in the fourth quarter of 2025 and then sold 94% of them in the first quarter of 2026.

If we go around digging into why they sold Amazon shares, you can come up with many reasons. For value investors, a price-to-earnings multiple of 31.6 times for 31% net income growth might have seemed expensive in December 2025. Moreover, 95% of free cash flow going towards capital spending on artificial intelligence (AI) data centres might have seemed risky.

For an active investor, the dip in Amazon’s share price because of Berkshire Hathaway’s sell-off presented a buying opportunity followed by a sale in the first quarter as AI stocks fell.

While the two billionaires have been selling Amazon, other wealth managers such as David Tepper at Appaloosa Management, Bill Ackman at Pershing Square Capital Management, and Larry Robbins at Glenview Capital Management have been buying Amazon shares. That explains the sharp dips and rallies in Amazon’s share price in the six months from October 2025 to March 2026.

What have billionaires been buying

Berkshire Hathaway has been buying shares of Alphabet (NASDAQ:GOOGL), and Duquesne Family Office has been buying several chip companies, with significant buying in STMicroelectronics. We get why Alphabet seemed like a better value stock than Amazon. Alphabet delivered similar 32% earnings growth at a P/E ratio of 21 times. It has market leadership in ad revenue, and search revenue continues to show strong double-digit growth. Even Google is investing a boatload of money in AI, but free cash flows are reasonably down 47%, unlike Amazon’s 95% dip.

Duquesne Family Office’s moves to chipmakers as chips enjoy short-term growth, as that is where all the AI capital spending is flowing.

Replicating billionaire buying on TSX stocks

If you were to replicate the investing logic of the two billionaires on the TSX, Celestica (TSX:CLS) presents a good opportunity. As an original design manufacturer having secured three hyperscaler clients, including Google, Celestica has a strong order book and significant potential for the next growth cycle. Now is a good time to buy the stock while it is still 27% below its June peak. It could surge another 50% or more in the third quarter as it executes its strong order book.

As for Alphabet (TSX:GOOG), you can buy this stock’s Canadian depository receipt in Canadian dollars. Fractional shares of Google can be bought at $55.30 per Canadian depository receipt.

The post Billionaires Are Unloading Amazon and Piling Into This TSX Stock appeared first on The Motley Fool Canada.

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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet, Amazon, Berkshire Hathaway, and Celestica. The Motley Fool has a disclosure policy.

BCE (TSX:BCE) has been in the news for its plan to build artificial intelligence (AI) for Canada. In the run-up to its rebranding from telco to techno, first announced in 2024, a lot of work has happened in this space. BCE lowered its capital spending on building Canadian fibre infrastructure and shifted its focus to building Bell AI fabric.

A little about Bell AI fabric

The work is ongoing on multiple fronts to bring Bell Canada’s vision for the AI fabric to reality. This fabric is a full-stack AI platform, and at its core is BCE’s nationwide fibre network. This network will be stacked up with data centre infrastructure, software, cloud capabilities, advanced professional integration services, and an ecosystem of Canadian technology partners.

Think of Bell’s fibre infrastructure getting a massive tech upgrade along the lines of Tony Stark preparing his Iron Man suit. This process is capital-intensive, needs a lot of collaboration, and pulls together multiple strings, from technology know-how to infrastructure building to capital.

The long-term growth opportunity for BCE

Bell has the advantage of a base fibre network and experience of building communications infrastructure on a large scale. It is partnering with universities and tech companies to collaborate on building the AI fabric. The government is also supporting AI infrastructure under the nation-building activity.

Bell has partnered with the Université de Sherbrooke on quantum technologies, post‑quantum cybersecurity, and sustainable data centre infrastructure. It has also ventured into direct-to-device satellite service by integrating AST SpaceMobile’s space-based cellular broadband network with its terrestrial network.

This journey of BCE from telco to techno looks promising and could generate higher returns in the long term. To give you a glimpse of the kind of returns BCE is expecting, its $1.3 billion investment in a Saskatchewan AI data centre is expected to generate $500 million in annual revenue and $400 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of 2027.

The risks that could slow BCE’s upside

Bell AI fabric opportunity looks promising, opening new revenue streams of cloud networking, high-performance computing, and satellite communications. But this comes at the cost of its already established fibre infrastructure in Canada, which is seeing a churn in subscriptions amidst aggressive price competition. The $500 million revenue from the AI data centre makes up for only 2% of BCE’s annual revenue of $24.5 billion. This conversion of revenue from traditional wireless and wireline services to AI and cloud services could see a pullback before a strong jump.  

Moreover, the Bell AI fabric infrastructure will increase capital expenditure needs, which means the first few years will see high depreciation costs. It means the earnings per share (EPS) growth might be negative, just as it is for most tech companies.

The biggest risk is the $42 billion debt on its balance sheet, which is 3.8 times its EBITDA. BCE has been disposing of its conventional, non-core businesses to repay debt and acquire new businesses with higher returns and faster growth. It has agreed to dispose of its land mobile radio network services business for $675 million and use the proceeds to reduce the leverage ratio to 3.5 times by the end of 2027.

The fine balance between risk and growth

BCE is currently walking on a thin rope. On one side, there is AI and cloud computing growth, and on the other side, the risk of high leverage and revenue shift from telco to techno. At this point, valuation is a challenge as the company undergoes a turnaround.

If you are looking to invest in BCE, be prepared for three to five years of stagnant growth or decline, as EPS could take a hit amidst the transition. If your motivation to hold the stock is the 5.6% dividend yield, you could consider buying, but do not rely on this dividend for your retirement. Remember, tech companies are not good dividend payers due to their need for constant infrastructure upgrades and investment in research and development.

However, you could hold off buying BCE until its AI fabric starts contributing meaningfully to the revenue. At least then you would see the telco-to-techno conversion altering the fundamentals and the stock valuation.

The post Don’t Buy BCE Stock Until This Happens appeared first on The Motley Fool Canada.

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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends AST SpaceMobile. The Motley Fool has a disclosure policy.

If you think the rapidly growing artificial intelligence (AI) is a software story, you might be overlooking a much bigger investment opportunity. Every AI model, cloud platform, and data centre relies on a massive network of physical infrastructure, from transformers and electrical equipment to engineering services and power systems.

That creates an opportunity for many companies working behind the scenes of the AI boom. And the great news is that Canadian investors have several interesting ways to gain exposure to this long-term trend without buying the world’s largest technology companies.

In this article, I’ll highlight two top Canadian stocks that are helping build the infrastructure behind AI and explain why their products and services are becoming increasingly important.

Keel Infrastructure stock

The first Canadian-listed company building the physical base for AI computing is Keel Infrastructure (TSX:KEEL). It mainly develops data centres and energy infrastructure for high-performance computing workloads, including AI. The company’s portfolio includes power generation, established grid connections, and renewable hydroelectric capacity across Pennsylvania, Washington, and Quebec.

Currently, KEEL stock trades at $5.50 per share with a market cap of $3.4 billion. Interestingly, the stock has surged 287% over the last year and 70% in 2026.

That strong stock performance has been driven largely by a major business transformation. Keel shifted away from Bitcoin mining, exited its Latin American megawatt operations, redomiciled to the United States, and refocused its development pipeline on North American high-performance computing and AI markets.

Its first-quarter results still showed the cost of that transition as Keel’s revenue fell 23% year-over-year (YoY) to US$37 million. General and administrative expenses rose to US$27 million due largely to professional services related to its U.S. redomiciliation, accounting conversion, and Paso Pe sale. As a result, the company posted an operating loss of US$98 million.

However, Keel’s long-term growth potential rests more on development than current earnings. The firm has a 2.2-gigawatt pipeline, including 648 megawatts of secured capacity.

As of May 8, Keel had about US$533 million of liquidity, which is expected to support Panther Creek, Sharon, and Moses Lake AI infrastructure projects through lease execution while supporting the start of construction at Moses Lake. These projects make Keel a direct way to follow the AI infrastructure buildout.

5N Plus stock

The next stock fits into the AI buildout through specialized components rather than physical sites, and that’s 5N Plus (TSX:VNP).

This Montreal-based firm produces specialty semiconductors and performance materials used in renewable energy, space satellites, imaging, optoelectronics, and advanced electronics.

At the time of writing, VNP stock traded at $33.40 per share with a market cap of roughly $3 billion. Its shares have climbed 226% over the last 12 months and 88% in 2026.

Unlike Keel, 5N Plus entered 2026 with strong earnings momentum. Its first-quarter revenue rose 33% YoY to US$117.9 million, mainly because of higher specialty semiconductors volumes and stronger pricing for bismuth-based products.

The company’s adjusted EBITDA jumped 41% from a year ago to US$29.2 million with the help of higher semiconductor volumes and prices that exceeded inflation for space solar power and bismuth products. With this, its net earnings nearly doubled to US$17.8 million from US$9.6 million. 5N Plus is now expanding capacity and improving productivity to support long-term demand.

Overall, its strong earnings growth, specialized semiconductor materials, and expanding production capacity position 5N Plus as an attractive stock to benefit from the long-term expansion of AI infrastructure.

The post The Canadian Companies Building AI Infrastructure and Why They Matter appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The rush to build artificial intelligence (AI) infrastructure is creating opportunities far beyond the tech sector in 2026. Data centres consume enormous amounts of power, and that electricity must be distributed through reliable equipment that can handle demanding workloads. Industry forecasts estimate the global data centre buildout could reach $650 billion, while research and advisory firm Gartner expects worldwide information technology (IT) spending to climb to $6.2 trillion in 2026.

A Canadian company that could emerge as a key winner from this data centre buildout is Hammond Power Solutions (TSX:HPS.A). Its surging sales, solid backlog, and strong growth in custom products tied to data centre projects suggest demand remains robust.

In this article, I’ll discuss why Hammond stock could become a Canadian winner from this massive infrastructure investment.

A top Canadian stock to benefit from the AI data centre buildout

In short, Hammond manufactures dry-type transformers, power quality products, and related magnetics used across data centres, commercial construction, mining, oil and gas, water treatment, and renewable energy projects. The company also has manufacturing facilities in Canada, the United States, Mexico, and India.

Hammond stock currently trades at $312.93 per share, giving it a market capitalization of about $2.9 billion. While its annualized dividend yield is modest at around 0.4%, the stock has rewarded shareholders with exceptional capital gains lately. It has surged 146% over the last year and is up 93% year to date.

Record demand is driving growth

The company’s latest results help explain why investors have become increasingly optimistic about its growth prospects. In the first quarter, Hammond posted record revenue of $264.8 million, up 31.5% year-over-year (YoY). Its strongest growth came from the United States and Mexico, where sales jumped 41.8% as custom transformer shipments rose, driven largely by data centre-related demand. India also delivered a solid 33.5% YoY sales growth, while Canadian sales rose 3.2%.

Even more encouraging, Hammond’s backlog in the latest quarter was 94.6% higher than a year ago and rose 4.1% from the end of 2025 despite record shipments. That clearly reflects that demand continues to outpace deliveries, giving the company good revenue visibility for the rest of the year.

On the profitability side, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 32.8% YoY last quarter to $41 million, while its adjusted earnings rose 29.7% to $2.08 per share. Better pricing and improved factory overhead absorption also helped its gross margin recover to 30.1% in the first quarter from 29.2% in the previous quarter.

However, tariff-related input costs continued to pressure Hammond’s profitability, contributing to a decline in reported net earnings.

Expanding for the next phase

Clearly, the data centre opportunity could become even larger as Hammond continues expanding its capabilities. Its newest manufacturing facility in Mexico began shipping products during the first quarter, increasing production capacity and improving lead times for customers.

Last month, the company also completed its $365 million acquisition of AEG Power Solutions, adding power conversion, critical power, controls, and service capabilities to its portfolio.

Overall, Hammond stock has already delivered outstanding returns, and factors such as tariff-related costs remain worth monitoring. Nevertheless, record sales, a rapidly growing backlog, and expanded manufacturing capacity suggest the company is well positioned to benefit as investment in AI infrastructure and data centres continues to accelerate, which could help its share price keep soaring in the years to come.

The post 1 Canadian Company Set to Make a Fortune From the $650 Billion Data Centre Buildout appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool has a disclosure policy.

Artificial intelligence (AI) may be the biggest trend in the tech world today, but the rapid growth in data centre spending is creating long-term opportunities of its own. Every time you stream a video, use cloud storage, or ask an AI chatbot a question, powerful data centres are working behind the scenes. As demand for computing power keeps climbing, companies are investing billions to expand that infrastructure. Investors don’t have to own the biggest AI names to benefit, either.

In this article, let’s look at two top Canadian stocks that could profit from this growing data centre spending boom.

Celestica stock

One of the clearest ways to benefit from that trend is through Celestica (TSX:CLS). The company designs hardware platforms and provides supply chain solutions for major customers, which puts it in a strong position as data centre and AI infrastructure spending accelerates.

CLS recently traded at $490.23 per share with a market cap of about $56.4 billion. Even after a 133% gain over the last year, the stock still has momentum because the business keeps delivering better numbers.

In the first quarter of 2026, the company’s revenue surged 53% year over year (YoY) to US$4.1 billion. While its adjusted earnings per share (EPS) climbed to US$2.16, its EPS on the generally accepted accounting principles (GAAP) basis rose to US$1.83 from US$0.74 a year ago. On the profitability side, Celestica’s adjusted operating margin improved to 8% last quarter from 7.1% a year ago, which shows that growth is not coming at the expense of profitability.

The biggest growth engine for Celestica was its Connectivity & Cloud Solutions (CCS) segment, where revenue jumped 76% YoY to US$3.2 billion.

The company now expects 2026 revenue of US$19 billion and adjusted EPS of US$10.15. Adding to the optimism, Celestica is continuing to expand its product lineup with products like DS6000-series 1.6TbE switches. Given these solid fundamentals, it looks like a great stock to buy right now because demand trends and operating momentum are both working in its favour.

5N Plus stock

Another smart way to gain from the surging demand of data centres is through 5N Plus (TSX:VNP), which supplies specialty semiconductors and performance materials used across advanced industries. That business mix indirectly gives it exposure to data centre demand, but in a way that could still benefit as electronics, connectivity, and high-value manufacturing activity expand.

Interestingly, VNP stock has skyrocketed by 349% over the last year. As a result, it now trades at $42.35 per share and carries a market cap of roughly $3.8 billion.

The company’s recent results help explain that enthusiasm. In the first quarter, 5N’s revenue rose 33% YoY to US$117.9 million, while EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 41% to US$29.2 million.

Similarly, its net earnings nearly doubled to US$17.8 million in the latest quarter from US$9.6 million a year ago. Those eye-popping gains suggest that demand and pricing are both helping the business move in the right direction.

More importantly, 5N Plus ended the quarter with a backlog of US$434.4 million, equal to 336 days of annualized revenue. The company also expects strength in Specialty Semiconductors to continue, backed by structural demand across its core markets.

Overall, 5N Plus stock stands out because it offers exposure to the buildout behind the digital economy and AI data centres through a different part of the value chain.

The post Data Centre Spending Is Heating Up: 2 Canadian Stocks to Buy appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Celestica. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

A falling stock price makes most investors nervous. But for long-term Foolish investors, it can sometimes be the exact opposite. When a fundamentally solid stock suddenly becomes cheaper, the real question is not, “Why is it falling?” It is, “Has anything actually changed about the business?”

More often than not, the market reacts to short-term fears while strong companies keep quietly strengthening their outlook behind the scenes. Those disconnects create some of the best buying opportunities you’ll ever see. One Canadian growth stock looks like a perfect example today. Despite trading roughly 32% below its high, the company continues to add merchants, grow revenue at an impressive pace, and invest heavily in technologies that could fuel growth for years.

For investors willing to think beyond the short-term, the recent pullback in this top Canadian stock could end up looking like a gift. Let’s take a closer look.

Why Shopify still looks like a “forever stock”

The Canadian stock that I find really attractive to buy now, despite being down sharply, is Shopify (TSX:SHOP). It remains one of the most important commerce platforms in the world. Its software helps businesses start, run, market, and scale operations across 175 countries. That ecosystem matters because merchants that build around Shopify tend to use more of its tools over time, which could deepen customer relationships and expand revenue opportunities.

Shopify stock currently trades at $173.20 per share with a market cap of about $225 billion. Even after rebounding 34% from its 52-week low, the stock remains down 32% from its 52-week high, making it look like an appealing opportunity for investors who plan to hold it for many years.

Shopify’s growth engine is still running

If you take a closer look at the ongoing trend in Shopify’s financials, we can clearly see that the business continues to execute at a high level. In the first quarter of 2026, Shopify’s revenue climbed 34% year-over-year (YoY) to US$3.2 billion. Its gross merchandise volume (GMV) rose to US$100.7 billion, while gross profit reached US$1.6 billion and operating income came in at US$382 million. At the same time, its free cash flow was a healthy US$476 million.

More importantly, the Canadian e-commerce platform giant’s subscription solutions revenue reached US$750 million, merchant solutions revenue rose to US$2.4 billion, and monthly recurring revenue improved to US$212 million. These solid numbers suggest Shopify is still finding ways to grow across different products and merchant types, even in a tougher backdrop for spending.

Why this pullback may be an opportunity

Another reason Shopify stock looks so attractive at the current market price is its financial flexibility. The company ended the first quarter with cash and cash equivalents of nearly US$1.9 billion, and management still expects second-quarter revenue growth in the high twenties. Interestingly, the Ottawa-headquartered firm also expanded its share repurchase authorization to US$5 billion, a sign that management sees value in Shopify stock after the recent pullback.

Moreover, the company is building tools tied to artificial intelligence (AI), payments, logistics, and merchant productivity, which could further strengthen its competitive position for years to come.

Why I would still buy it for the long haul

While growth stocks can deliver strong long-term returns, I wouldn’t recommend buying any of them without keeping an eye on how the business performs. But if you want a business with global scale, strong cash generation, and plenty of room to expand, Shopify stock looks like a great pick. The recent sell-off hasn’t changed the company’s long-term growth prospects. Instead, it has made this proven growth stock available at a more attractive valuation.

The post 1 Canadian Stock Down 32% to Buy Immediately for Life appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

The artificial intelligence (AI) boom isn’t just making chipmakers rich. It’s also fueling one of the biggest infrastructure spending waves the world has ever seen. According to market research firm Dell’Oro Group, global data centre capital expenditures are now expected to top US$1 trillion in 2026 as hyperscale AI deployments and cloud infrastructure investments continue to accelerate.

That’s why investors may want to look beyond AI-focused tech stocks. Industrial companies providing the critical equipment needed to build and power data centres could also benefit, and Hammond Power Solutions (TSX:HPS.A) is one of them. This transformer manufacturer is already benefiting from surging demand for electrical infrastructure, and its latest results suggest the growth runway may still be getting longer.

In this article, I’ll highlight why this Canadian stock could soar as the trillion-dollar data centre buildout continues.

Powering a major growth trend

If you don’t know it already, Hammond Power Solutions makes dry-type transformers and related electrical equipment used across industrial, commercial, and infrastructure projects. That product lineup puts it in a sweet spot because data centres need dependable power management equipment to operate safely and efficiently.

Its stock has surged about 162% over the last year, showing how much investor confidence has improved as demand for its products keeps building. As a result, it now trades close to $334 per share, giving the company a market cap of about $3 billion. It also pays a quarterly dividend, though its current yield of about 0.3% is clearly a bonus rather than the main reason to own the stock.

Financial strength is driving the rally

The ongoing growth trend in Hammond’s financials clearly shows why investors are excited. The company generated record sales of $265 million in the first quarter of 2026, up 31.5% from a year ago. Its gross margin also improved to 30.1% with the help of pricing strength and better factory overhead absorption.

On the profitability side, the company posted adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $41 million, equal to 15.5% of sales, while its adjusted earnings rose 29.7% year-over-year (YoY) to $2.08 per share. Those solid numbers suggest that the company is not just riding a temporary spike in orders.

Record demand is feeding the backlog

In the latest quarter, Hammond Power’s backlog jumped 94.6% YoY. A large part of that increase came from data centre-related demand, giving the company a healthy stream of work that could keep revenue elevated in the quarters ahead.

Its new factory in Mexico also started shipping during the first quarter. That should support higher production volumes and help the company serve customers more efficiently as order activity remains strong in the United States and Mexico.

A bigger platform for future growth

Beyond these positive factors, Hammond recently agreed to acquire AEG Power Solutions for about $365 million, a move that should expand the business beyond its core transformer operations. The deal adds more reach in power quality and power conversion, which could make Hammond even more useful to customers building modern electrical systems.

The company is also rolling out its Integrated Electrical Solutions unit. By bringing together capabilities in magnetics, power quality, conversion, controls, critical power, and service, Hammond can offer broader system-level support instead of selling only stand-alone components.

That matters because the data centre opportunity is not likely to be a one-quarter story. Operators want trusted suppliers that could support performance, reliability, and uptime across larger and more sophisticated projects.

Given these positive factors, I wouldn’t be surprised if Hammond stock continues to soar in the years to come and helps investors benefit from one of the biggest infrastructure investment cycles in recent history.

The post 1 Canadian Company Set to Soar From the $1 Trillion Data Centre Buildout appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool has a disclosure policy.

Building millionaire-level wealth usually comes from owning exceptional businesses that keep growing year after year. While no stock can guarantee that kind of return, Shopify (TSX:SHOP) remains one of the TSX‘s strongest long-term growth stories, making it an attractive option for patient investors.

After having built one of the world’s leading commerce platforms, the company continues to deliver impressive financial growth and is finding new growth opportunities through artificial intelligence (AI). For investors willing to ride out short-term volatility, Shopify could still have enormous upside ahead, in my opinion. Let me explain why.

A commerce giant built for long-term growth

Today, Shopify’s platform helps businesses across the globe manage nearly every aspect of selling products, including online and in-store sales, payments, shipping, inventory, marketing, and customer engagement. As its merchant base grows, many also adopt Shopify’s expanding ecosystem of services, creating additional revenue opportunities for the company.

Currently, Shopify stock trades at $171.42 per share with a market cap of around $220 billion. While its shares have declined 22% so far in 2026, they remain up 8% over the past year. That volatility may worry some investors, but it could also create a buying opportunity for Foolish investors focused on the company’s long-term growth potential.

Growth continues to impress

Shopify’s latest quarterly results once again demonstrated why it remains one of Canada’s premier growth companies. Its first-quarter revenue surged 34% year-over-year (YoY), backed by healthy growth across regions, customer segments, and sales channels. Adding to the optimism, the company generated a free cash flow margin of 15%, showing that strong growth is increasingly translating into meaningful cash generation.

Its gross merchandise volume (GMV), which simply measures the total value of products sold through Shopify’s platform, exceeded US$100 billion during the quarter alone. The company’s monthly recurring revenue for the quarter also climbed nearly 16% YoY to US$212 million, reflecting continued demand for its subscription offerings.

Similarly, Shopify’s subscription solutions segment revenue grew 21%, and merchant solutions jumped 39%. Its operating income also rose to US$382 million last quarter from just US$203 million a year ago. Those solid numbers clearly highlight that Shopify is becoming both larger and more profitable.

Artificial intelligence creates another growth engine

Meanwhile, Shopify is positioning itself to benefit from the rapid adoption of AI. The company believes its decades of commerce data give it a significant competitive advantage as AI becomes increasingly integrated into online retail. AI-powered tools could help its merchants improve customer experiences, automate routine tasks, and optimize marketing.

While Shopify’s valuation and share price could continue to fluctuate, its business continues to expand its revenue, profitability, and ecosystem. If the company keeps executing as it has, investors who stay focused on the long term could see the power of compounding work in their favour, which is exactly how many millionaire portfolios are built.

The post This Stock Could Be Your Ticket to Millionaire Status appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

Buying a stock after it has fallen requires a different mindset than buying one that’s making new highs. Instead of chasing momentum, you’re actually asking a much harder question: has the market correctly priced the risks, or has it become too pessimistic about the company’s future?

That distinction matters because some stocks deserve lower valuations than they already have, while others continue making consistent financial progress even as investor sentiment deteriorates. Open Text (TSX:OTEX) falls into the second category in my opinion. The stock has spent the past year navigating slower technology spending and changing investor expectations, yet it continues to generate strong free cash flow, grow its cloud business, and return capital to shareholders through dividends and buybacks. That’s not what you’d expect from a business in decline.

Let’s look at why Open Text remains a top Canadian dividend stock I’d be comfortable buying after its recent pullback and holding for the long term.

A top Canadian dividend stock with AI exposure

To give you a little background, Open Text is a Waterloo-based information management firm that provides software and services for global enterprises, small and medium-sized businesses, and governments. Its platform helps organizations manage content, cybersecurity, business networks, information technology operations, analytics, and the data needed for artificial intelligence (AI) workflows.

Although OTEX stock has gained nearly 5% over the last three months, it remains 44% below its 52-week high. As a result, it now trades at $31.39 per share and carries a market cap of $7.6 billion.

Open Text is one of the few Canadian technology stocks that combines enterprise software growth with a reliable dividend, as it currently yields about 4.9%.

Recent results point to durable demand

Note that Open Text reports its earnings in U.S. dollars, and its third-quarter fiscal 2026 (ended in March) results showed that demand for its services has not disappeared. The tech firm’s total quarterly revenue rose 2.2% year-over-year (YoY) to US$1.3 billion. Its cloud revenue jumped by 6.6% YoY to US$493 million, marking the company’s 21st consecutive quarter of organic cloud growth.

On the profitability side, Open Text delivered a strong 13% net profit margin and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 34%. It generated US$355 million in operating cash flow and US$305 million in free cash flow during the quarter.

Why long-term investors may look past the dip

In addition to its strong financials, Open Text is also positioning itself around several long-term technology trends. The company plans to invest around US$120 million in Ireland over three years. Interestingly, these investments are linked to agentic AI, cybersecurity, cloud, and digital operations capabilities.

At the same time, its US$150 million divestiture of Vertica, a non-core structured data analytics platform, should help Open Text concentrate more capital and attention on its core businesses.

Given its large customer base, positive AI momentum, strong margins, meaningful free cash flow, and a nearly 5% dividend yield, I find this undervalued dividend stock really attractive to buy on the dip, especially for patient investors.

The post 1 Canadian Dividend Stock Down 44% to Buy and Hold Forever appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Open Text. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

When the stock market is volatile due to macroeconomic and geopolitical factors, pullbacks could make investors uncomfortable. But they could also make fundamentally solid dividend stocks even more attractive. All you need to do is to separate a weak share price from a weak business. When the underlying company is still investing, growing in important areas, and paying attractive dividends, the dip looks even more interesting.

That currently seems to be happening with BCE (TSX:BCE). The telecom giant has been under pressure and lost nearly 50% of its value over the last three years. Still, BCE remains one of Canada’s largest communications firms, with wireless, internet, television (TV), media, and business services that reach millions of customers.

In this article, I’ll tell you why this top TSX dividend stock still deserves a place in a long-term income portfolio.

A telecom stock with a wide reach

To put it simply, BCE owns many well-known brands like Bell, Bell MTS, Bell Aliant, Fibe, Northwestel, and Ziply Fiber in the United States Pacific Northwest. That wide network gives the company several revenue streams across connectivity, content, and enterprise services.

Although BCE stock has fallen about 50% over the last three years, its long-term growth prospects continue to improve. Currently, the stock trades at $30.55 per share with a market cap of $28.5 billion. At the current market price, its dividend yield sits at 5.7%, paid on a quarterly basis.

For income investors, that attractive yield could be another reason to keep watching. While a high yield should never be the only reason to buy from a company with essential services and a national footprint, it deserves a closer look.

Recent results show some growth

In the first quarter ended in March 2026, BCE posted 4% year-over-year (YoY) consolidated revenue growth, which helped lead to a 2.9% YoY increase in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). The Ziply Fiber acquisition played a big role in the growth, helping its internet segment revenue rise 15% from a year ago.

That deal also added nearly 50,000 residential fibre-to-the-home (FTTH) internet net subscriber activations. For a telecom business, fibre growth matters because it can support customer retention, faster speeds, and better long-term competitiveness. If BCE can keep improving its network quality while controlling costs, that could help protect its market position.

The AI and media angle

At the same time, BCE is leaning into artificial intelligence (AI). Its AI-powered enterprise solutions generated 113% YoY revenue growth in the latest quarter, while Bell Business Markets revenue rose 9.7%. Its products, such as Ateko, Bell Cyber, and Bell AI Fabric, give the company more ways to serve business customers beyond basic connectivity.

Moreover, its media side is showing momentum as well. In the latest quarter, subscriptions of its entertainment offering Crave climbed 25% YoY, helped by direct-to-consumer streaming and sports content.

Its partnership with Cohere, Hypertec, and BUZZ HPC to advance sovereign AI in Canada could also back its future growth. The collaboration combines BCE’s data-centre and connectivity base with enterprise-grade AI solutions and accelerated computing infrastructure.

While none of these initiatives guarantee a quick rebound in the share price, they clearly show that BCE is not simply relying on its legacy phone and media businesses. In fact, it’s trying to build new revenue streams around connectivity, cloud, security, AI, and streaming content – making it the top TSX dividend stock still worth every dollar.

The post This TSX Dividend Stock Is Down 50% and Still Worth Every Dollar appeared first on The Motley Fool Canada.

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• I’d Put My Entire TFSA Into This 5.6% Dividend All-Star
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• BCE’s Dividend: What Every Investor Needs to Know
• Why I’d Choose This Dividend Stock Over Telus or BCE Any Day

Fool contributor Jitendra Parashar has positions in BCE. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.