Whereas a handful of U.S. tech giants have gained fame from the synthetic intelligence (AI) growth, a Canadian tech inventory has been outperforming and blowing previous expectations with out all of the noise. It’s not a family identify but, however which will change quickly. This firm’s position in powering AI workloads and cloud options continues to achieve momentum, backed by robust margins and growing demand.

One of the necessary elementary elements that makes this Canadian AI inventory much more enticing is its capacity to develop with out shedding deal with profitability. In contrast to many high-growth tech friends that chase top-line good points on the expense of income, this stability is uncommon in at present’s tech sector.

On this article, I’ll speak about one such Canadian AI inventory that has all of the qualities long-term buyers search for. This one appears like an ideal candidate for many who need to purchase and maintain without end.

A prime Canadian AI inventory to carry without end

With all that in thoughts, Celestica (TSX:CLS) could possibly be one of many smartest Canadian AI shares to personal for years to come back. CLS inventory has climbed practically 396% within the final yr and is presently buying and selling at $342.65 per share with a market cap of $39.3 billion.

An enormous a part of this stable momentum in Celestica inventory comes from its rising relevance in AI and cloud computing infrastructure. Celestica’s connectivity and cloud options (CCS) enterprise is prospering, with the corporate additionally delivering enterprise-grade storage and compute platforms that assist high-performance computing and AI workloads.

In early August, it even launched a brand new enterprise storage controller designed for excessive efficiency and scalability, a transparent transfer aligned with long-term AI traits.

This AI inventory’s numbers are doing the speaking

Now let’s speak about Celestica’s numbers, as a result of they’re telling a robust story. Within the second quarter, the agency reported a powerful 21% YoY (year-over-year) surge in its complete income to US$2.9 billion. Extra importantly, its adjusted earnings per share (EPS) jumped 54% YoY to US$1.39.

Each income and EPS had been above the excessive finish of the corporate’s steering with the assistance of stronger-than-expected demand – particularly in its communications and enterprise finish markets. Final quarter, Celestica’s adjusted working margin additionally hit a report 7.4%, which clearly exhibits that it’s not simply rising quick, however doing so profitably and effectively.

These stable outcomes helped the corporate elevate its full-year outlook. It now expects income to succeed in US$11.6 billion for 2025 and adjusted EPS to come back in round US$5.50 – each greater than its earlier estimates.

A sensible AI guess that’s constructed to final

Clearly, Celestica isn’t simply driving short-term AI tailwinds but in addition investing in what issues most for long-term worth creation. From launching new merchandise just like the SC6110 storage controller to partnering with main gamers like AMD, the corporate is doubling down on its position in driving AI infrastructure.

Its deal with {hardware} platforms, design innovation, and provide chain options makes it an necessary piece within the rising AI and cloud ecosystem. After we mix robust financials, rising demand, sensible execution, and a agency footing in AI infrastructure, Celestica inventory is rising as a quiet powerhouse within the AI and cloud computing house – with out the hype. And that’s one of many key explanation why it’s already part of my long-term portfolio.