Nvidia (NASDAQ:NVDA) made synthetic intelligence (AI) really feel like a one-stock market, however the perfect positive aspects usually conceal within the provide chain behind the famous person. Whenever you look past Nvidia inventory, watch three issues. First, discover a firm that sits within the circulation of AI spending, not a facet quest. Second, demand actual earnings and actual money, as a result of AI buzz fades quick when budgets tighten. Third, verify pricing energy, as a result of clients negotiate exhausting as soon as provide catches up.
Then stress-test buyer focus, cycle threat, and steerage self-discipline, as a result of hype can transfer a inventory, however numbers hold it transferring. Lastly, evaluate valuations and search for a moat that survives a worth conflict, not a scorching product cycle. So let’s take a look at one I’d take into account over Nvidia inventory, and why.
NVDA
Nvidia sells the brains of contemporary AI. It designs graphics processing models (GPU) and networking gear that run coaching and inference workloads contained in the world’s greatest information centres. It pairs that {hardware} with software program instruments that builders depend on every single day. It additionally pushes full platforms, from interconnect to techniques, so clients can scale sooner with fewer complications. That blend turns Nvidia right into a toll sales space on the AI freeway, which explains why the inventory instructions a lot consideration in Canada and all over the place else.
The newest earnings report confirmed why buyers nonetheless crowd into it. Nvidia delivered income of US$57 billion within the third quarter of fiscal 2026, and it posted GAAP diluted earnings per share (EPS) of US$1.30. The info-centre section generated US$51.2 billion of income, which highlights the place the expansion engine lives.
Now the inventory should outrun its personal expectations. Administration guided for fourth-quarter income of about US$65 billion, so the expansion story nonetheless factors up. However valuation already bakes in quite a lot of excellent news. Nvidia inventory presently trades at round 47 instances earnings, so buyers pay at this time for years of fresh execution. That may work, nevertheless it leaves little room for a wobble in cloud budgets, harder export guidelines, or a competitor that closes the hole in efficiency per watt.
CLS
Celestica (TSX:CLS) offers Canadians a unique angle on the identical AI growth. It builds and integrates the bodily {hardware} that information centres want, together with high-speed connectivity and server platforms, plus the boring however important items that hold racks secure, cool, and powered. It earns its hold by means of engineering help, provide work, and flawless supply when clients ramp quick. This firm hardly ever lands on journal covers, but hyperscalers nonetheless want it once they develop capability.
Latest outcomes proved that the demand appears to be like actual. Celestica delivered fourth-quarter 2025 income of US$3.7 billion, and it produced adjusted EPS of US$1.89. It additionally generated US$458 million of free money circulation in 2025, which issues as a result of factories run on money, not vibes.
The ahead image appears to be like aggressive, and that units up each upside and threat. Administration pointed to 2026 income of about US$17 billion and adjusted EPS of about US$8.75, plus a free-cash-flow goal round US$500 million, whereas it ramps spending so as to add capability. The market already rewards that plan, with the inventory buying and selling at 39 instances earnings and a $45.9 billion market cap. Subsequently, the inventory wants continued execution, and a buyer pause or value slip can sting.
Backside line
So why name Celestica the higher purchase than Nvidia inventory proper now? Nvidia inventory can hold successful, however the inventory already sits on the centre of the AI commerce, so it wants near-perfect demand to remain thrilling. Celestica ties on to the build-out part of AI, when firms purchase racks, cables, and techniques in bulk, not simply chips. It additionally offers Canadians a home-market strategy to play AI {hardware} with out paying for Nvidia inventory’s dominance twice.
The chance stays actual, particularly with large buyer focus, however the steerage reset and money technology go away room for upside when sentiment turns. If you’d like a inventory that may journey AI with no need each headline to remain good, this one matches.