The factitious intelligence (AI) wave has despatched a ripple impact throughout all tech shares worldwide. Nations are racing in the direction of AI supremacy. When DeepSeek beat ChatGPT, Nvidia shares nosedived. Whereas the Nasdaq has some easy AI shares, Canada has some tech shares which were reignited by AI investments.
Canadian tech shares that rallied
Over the past two years, electronics producer Celestica (TSX:CLS) has made its shareholders rich, rising 920% since August 2023, beating Nvidia’s rally of 345% throughout the identical time.
Not way back, BlackBerry (TSX:BB) inventory witnessed a 120% rally between December 2024 and February 14, 2025. BlackBerry’s rally was not sustainable, whereas Celestica’s rally has pushed it to a excessive valuation. Among the many two, which is a greater AI inventory to purchase proper now?
Celestica and its AI potential
Electronics manufacturing was not fairly a beautiful enterprise for traders earlier than, as many of the manufacturing was outsourced to the East. Celestica bought recognition when it began manufacturing servers and storage for AI and machine studying. In 2023, when ChatGPT created the urgency to construct AI functionality, all tech firms poured in billions to construct knowledge centres and networking functionality.
Celestica was flooded with orders. Its income development accelerated from 9.6% in 2023 to twenty% and it expects to keep up this price in 2025. Servers and storage are high-margin merchandise. Therefore, its earnings per share grew sooner than income.
| Particulars | 2022 | 2023 | 2024 | 2025* |
| Income ($ billion) | 7.3 | 8 | 9.6 | 11.55 |
| YoY development | 9.6% | 20.0% | 20.3% | |
| Adjusted EPS ($) | 1.94 | 2.46 | 3.88 | 5.5 |
| YoY development | 26.8% | 57.7% | 41.8% |
And the best way commerce struggle and geopolitical situations are shaping, North American manufacturing may revive. Celestica has a direct hyperlink to rising funding in AI infrastructure. It’s a inventory you may think about shopping for. Nonetheless, await a 20-30% seasonal dip in August and September earlier than shopping for the inventory.
The subsequent wave of AI orders may ship the inventory to a brand new excessive, no matter excessive valuations, because the AI cyclicality is at its peak.
BlackBerry and its AI potential
The cybersecurity and Web of Issues software program options supplier BlackBerry performs an vital position within the AI world. When AI is tapping into data and AI gadgets are engaged on the sting alongside people, the necessity for safe communications is paramount. Whereas BlackBerry has QNX software program, its utilization is essentially restricted to automotive.
The corporate has a baggage of years of losses, a weak go-to-market technique, and a sluggish turnaround in a extremely aggressive area. It has undergone a number of administration adjustments.
Nonetheless, issues have began to alter for BlackBerry. BlackBerry reported its first revenue in years within the first quarter of fiscal 2026 after promoting its loss-making Cylance to Arctic Wolf. It’s now centered on diversifying QNX to Common Embedded Market functions, corresponding to robotics, industrial automation, and medical gadgets and gear. The conclusion of income from these orders is lastly driving income in the direction of development.
As for its Safe Communications enterprise, it’s seeing a blended response. Firms are transferring their enterprise to the cloud, whereas governments and businesses with excessive safety wants are choosing BlackBerry’s Unified Endpoint Administration.
Which is a greater Canadian AI inventory?
Celestica has the manufacturing capability to faucet into AI infrastructure funding. Nonetheless, it doesn’t have mental property that might differentiate it if competitors will increase. BlackBerry has the mental property, however poor execution is limiting its potential.
Whereas each are tapping the AI alternative, the sturdy execution of Celestica is driving its inventory worth, making it a greater inventory to faucet the AI alternative.
It could be flawed to rule out BlackBerry’s AI potential. Buyers ought to have a look at its execution technique. As soon as execution improves and BlackBerry can maintain that momentum, it might be a inventory price investing in.
