Whereas the unreal intelligence (AI) narrative is dominated by tech giants south of the border, a number of Canadian shares are gaining traction on this extremely disruptive market.
On this article, I’ve recognized two of the perfect Canadian AI shares you should buy in October 2025 to generate outsized returns. Let’s dive deeper.
Celestica
Valued at a market cap of $39.4 billion, Celestica (TSX:CLS) inventory has risen near 400% within the final 12 months. Celestica affords complete end-to-end provide chain options and manufacturing companies to know-how firms worldwide.
It designs, manufactures, and assembles electronics and {hardware} platforms throughout two important segments: Superior Expertise Options and Connectivity and Cloud Options.
Celestica serves unique gear producers, cloud service suppliers, hyperscalers, and firms in aerospace, defence, industrial, healthcare know-how, communications, and enterprise markets.
Celestica delivered distinctive second-quarter outcomes pushed by explosive demand for networking gear from hyperscale prospects constructing out AI information centre infrastructure. It reported income of $2.9 billion, a 21% enhance 12 months over 12 months, whereas adjusted earnings grew 54% to $1.39 per share in Q2.
The Connectivity and Cloud Options section skilled a 28% enhance in gross sales, pushed by hyperscaler orders for 400G and 800G networking switches.
Communications income surged 75% as a number of 800G packages ramped alongside continued power in 400G demand. Administration famous that 800G volumes reached parity with 400G within the quarter and now expects each main hyperscaler buyer to deploy 800G switches.
Development forecast
In 2025, Celestica forecasts income to extend by 20% to $11.6 billion, with adjusted EPS progress predicted at 42%. It additionally expects free money move to extend to $400 million in 2025, up from $261.4 million in 2024.
Celestica efficiently introduced up its first Tomahawk 6 system inside days of receiving silicon samples in June, positioning the corporate for the launch of 1.6-terabyte change packages in late 2026.
Analysts forecast that Celestica’s income will enhance from $9.6 billion in 2024 to $16 billion by 2027. On this interval, adjusted earnings are forecast to increase from $3.88 per share to $8.11 per share. If the tech inventory is priced at 35 occasions ahead earnings, it might achieve 16% over the following 18 months.
Nicely Well being
Valued at a market cap of $1.4 billion, Nicely Well being (TSX:WELL) is a health-tech firm. The Canadian inventory has returned greater than 3,300% to shareholders since its preliminary public providing in 2016. Nonetheless, it additionally trades 44% under all-time highs, permitting you to purchase the dip.
In Q2 2025, WELL Well being reported document gross sales of $356.7 million, a rise of 57% 12 months over 12 months. Comparatively, adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) greater than tripled to $50 million.
WELL now operates 222 clinics with over 1,000 physicians serving multiple million affected person visits quarterly for the primary time. The corporate achieved 40% income progress and 76% EBITDA progress in Canada, whereas sustaining a powerful natural progress fee of 25%.
Administration showcased spectacular capital allocation self-discipline, because it acquired 31 clinic teams for $280 million at a mean a number of of 9.4 occasions EBITDA, then improved operations to push the implied a number of down to only 4.7 occasions by means of operational enhancements.
WELL is accelerating its Canadian growth timeline and targets $100 million in adjusted EBITDA by mid-2026 slightly than year-end. Analysts forecast income to extend from $919.7 million in 2024 to $1.8 billion in 2029.
On this interval, free money move is projected to extend to $177.5 million, in comparison with an outflow of $6.7 million. If the TSX inventory is priced at 20 occasions ahead FCF, it might surge 160% throughout the subsequent 4 years.
