Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
Affiliate Disclosure: Bestcanadianstocks.ca may earn a commission when you open an account or make a purchase through links on this page. This comes at no additional cost to you and helps us continue providing free financial content to Canadian investors.
The TSX Bounced Back on Monday — Tech Led the Way
The S&P/TSX Composite closed at 34,479 on Monday, June 8, 2026, a gain of +0.2% that capped a sharp two-day reversal. The index had finished the previous Friday at 34,413, a drop of -2.3% that marked its biggest one-day decline in nearly four months. That selloff was driven by stronger-than-expected Canadian and U.S. employment data, which pushed bond yields higher and pressured rate-sensitive equities across the board.
Monday told a different story. Energy and technology stocks paced the recovery, with Celestica (TSX:CLS) and Shopify (TSX:SHOP) among the technology names moving higher in Monday’s session. The TSX had touched record territory earlier in June before the Friday pullback, and the rebound reinforced that the underlying trend for Canadian equities remains intact — even if the path is not a straight line.
The question worth asking: what is actually driving Celestica’s momentum, and how durable is it?
Celestica’s AI-Infrastructure Quarter — The Numbers Behind the Move
Celestica reported Q1 2026 results on April 27, 2026, and the numbers were exceptional. The company posted revenue of US$4.05 billion, up 53% year-over-year, while adjusted EPS (non-GAAP) came in at US$2.16, up 80% year-over-year — beating the top end of Celestica’s own guidance range of US$1.95 to US$2.15.
The engine behind that growth is the Connectivity and Cloud Solutions (CCS) segment, which generated US$3.24 billion in revenue, up 76% year-over-year. CCS is where Celestica’s AI and machine learning infrastructure programs live — the servers, networking hardware, and data centre equipment that hyperscalers need to build and expand AI capacity. Demand in this segment has been consistently ahead of management’s own projections.
On the strength of Q1, Celestica raised its full-year 2026 guidance to approximately US$19 billion in revenue (also representing +53% year-over-year growth) and approximately US$10.15 in adjusted EPS (+68% year-over-year). Management noted robust AI/ML and CCS demand, with visibility extending into 2027. For context on current quarter expectations, Celestica guided Q2 2026 revenue to US$4.15–$4.45 billion with adjusted EPS of US$2.14–$2.34.
One detail Canadian investors should keep in mind: Celestica reports all of its financial results in U.S. dollars. When you hold TSX:CLS in a Canadian brokerage account, your returns are denominated in CAD. That currency translation layer matters — more on that in the risk section below.
For broader context on Canadian stocks and how technology fits within the TSX’s sector composition, it is worth understanding that technology remains a smaller weight on the TSX compared to the S&P 500, which makes names like Celestica and Shopify outsized contributors to any Canadian tech exposure.
What About Shopify? The Other Tech Name Moving on Monday
Shopify was also higher in Monday’s session, adding to its role as one of Canada’s most closely watched growth stocks. Specific revenue and earnings figures from Shopify are not the focus of this article — the analytical weight here sits squarely on Celestica’s well-sourced Q1 results.
What is worth noting qualitatively is that Shopify’s story continues to be shaped by improving profitability and free-cash-flow growth, expanding merchant adoption, rising penetration of its payments infrastructure, and increasing traction with enterprise customers and international markets. These are the same secular themes — digital commerce, platform expansion, global scale — that have underpinned the stock’s long-term trajectory and that attract Canadian growth investors.
Together, Celestica and Shopify represent two very different expressions of Canadian technology: one serving the infrastructure layer of AI, the other the infrastructure layer of commerce. Both moved higher Monday, reflecting investor appetite for growth in a session that recovered its footing after Friday’s yield-driven selloff.
If you are evaluating where to buy Canadian tech stocks, the account type and platform you choose can make a real difference in the costs and flexibility you have as a self-directed investor.
Rates, Valuations, and the Risks You Should Not Ignore
Any honest look at Canadian tech stocks in 2026 has to grapple with risk, and there are several worth naming clearly.
Valuation. Celestica’s results have been exceptional, but strong earnings have already driven a significant re-rating. Valuations across AI-infrastructure names are elevated after an extended run. AI and machine learning hardware demand could prove cyclical — hyperscaler capital expenditure has historically come in waves, and what gets pulled forward in one period can moderate in the next.
Customer and hyperscaler concentration. The CCS segment’s growth depends heavily on a relatively small number of major cloud and technology customers. If any of those customers shift their capex plans, slow their build-out pace, or bring manufacturing in-house, the effect on Celestica’s top line would be direct and material.
USD/FX risk. As noted above, Celestica reports in U.S. dollars. Canadian investors holding TSX:CLS in CAD-denominated accounts are exposed to exchange rate movements that are entirely independent of how the underlying business performs. A strong Canadian dollar compresses realized returns even when the business delivers.
Single-stock concentration. One strong quarter from one company — or two strong movers in one session — does not constitute a portfolio strategy. Diversification across sectors, geographies, and account types remains important regardless of how compelling any individual thesis looks in a given week.
Rate sensitivity. The Bank of Canada’s policy rate currently sits at 2.25%, and the next rate decision is due on June 10, 2026 — tomorrow at the time of publication. Lower or steady rates reduce the discount rate applied to future earnings, which generally supports the valuations of growth stocks. Rate increases work in the opposite direction. This article does not predict what the Bank of Canada will do. For a deeper look at what lower rates mean for growth stocks versus dividend payers, that context is worth reading alongside this piece. The full picture on the June 10 decision and the jobs data driving it is covered in a separate article.
All data as of June 9, 2026.
How Canadian Investors Can Act on This
The case for holding some Canadian technology exposure is straightforward: the TSX is heavily weighted toward financials, energy, and materials. For investors whose portfolios already reflect that concentration, adding a name like Celestica provides a different kind of growth — one tied to AI infrastructure spending rather than commodity prices or interest rate spreads.
That said, this is information and context, not a buy recommendation. The risks outlined above are real, and position sizing and diversification decisions depend entirely on your own financial situation and goals.
One structural consideration worth making: if you do hold growth stocks with meaningful capital gain potential, holding them tax-efficiently in a TFSA shelters any capital gains from CRA entirely. That compounding advantage is particularly relevant for higher-volatility names where the upside — and the tax exposure on that upside — can be significant.
Ready to add Canadian tech and growth stocks to your portfolio? Open a Questrade account and get $50 in free trades — Questrade offers low commissions for Canadian self-directed investors, and ETF purchases are always free.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
