Synthetic intelligence (AI) remains to be the thrill in 2026, though you possibly can simply spot wannabes that point out AI in advertising and marketing pitches and earnings calls with zero AI revenues to indicate. However for Canadian traders, Celestica (TSX: CLS) is the actual deal.
Whereas this Canadian AI king will not be a trillion-dollar chipmaker like NVIDIA within the U.S., its returns dwarf these of the American counterpart. At $415.53 per share, Celestica’s complete three-year return is a staggering plus-2,257%. Compared, NVDA trades at US$187.67 per share (roughly C$257.59) and has delivered a achieve of plus-878.8% over the identical interval.
TSX’s prime progress inventory
Celestica will not be solely the AI chief but in addition TSX’s prime progress inventory. CLS achieved back-to-back wins within the TSX30—the flagship program recognizing the 30 top-performing shares over a three-year interval. After putting 2nd in 2024 with a three-year dividend-adjusted share value efficiency of plus-706%, it secured the highest spot in 2025 with an astronomical appreciation of plus-1,5995.
The consecutive high-profile rankings point out the robust international demand for AI infrastructure. Extra importantly, it proves that Celestica has efficiently delivered industry-leading shareholder worth, far outpacing even the most important names within the AI house.
Infrastructure powerhouse
The $47.8 billion firm is on the forefront of the AI revolution. Celestica has grow to be an infrastructure powerhouse, constructing high-speed networking switches that may deal with the large knowledge hundreds.
At the moment, CLS is a direct {hardware} play and an vital associate for “hyperscalers” similar to Amazon, Alphabetand Microsoft. The investments of those mega-cap tech titans drive demand for Celestica’s companies. Fb mother or father Meta Platforms faucets Celestica for knowledge infrastructure.
Along with hyperscalers, Celestica’s complete portfolio caters to shoppers throughout varied sectors, together with monetary companies, automotive, and healthcare, which generate giant volumes of information whereas digitalizing operations. The AI knowledge centre is Celestica’s largest and fastest-growing market.
Monetary efficiency
Many traders concern an AI bubble. Celestica is way from speculative, given its stability sheet, monetary efficiency, and visual profitability within the coming years. By the point this text comes out, the corporate may have launched its full-year 2025 outcomes.
In the meantime, within the first three quarters of 2025 (9 months ending September 30, 2025), internet revenue rose practically 100% year-over-year to US$565 million. Administration expects to finish the 12 months with free money movement (FCF) of US$425 million and targets an FCF of US$500 million in 2026.
Celestica has ample liquidity to proceed R&D actions. Additionally, its 2025–2026 buyback program is in place and can finish on November 2, 2026, finishing its buybacks to reinforce shareholder worth. The corporate can purchase again as much as 221,734 shares per day.
Actual deal
Celestica performs a crucial function within the international AI provide chain and dominates the high-growth Connectivity & Cloud Options (CCS) market. Clearly, Celestica is a “actual deal,” to not point out a cash-generating machine past earnings. Explosive progress is on the horizon for this Canadian AI king. You would possibly wish to take a place to capitalize on the upward momentum that can observe after the earnings launch.