Analysis from Simply Wall St has highlighted three Canadian technology stocks as undervalued opportunities tied to growing artificial intelligence and digital infrastructure investment. The screening, which identified 14 other companies with similar stories, comes as UK economic growth hits its fastest pace in more than two years, powered in part by heavy investment in AI. The focus shines a light on Canadian tech firms the market may not fully appreciate, according to the analyst consensus narratives. The first company is Topicus.com, a vertical market software specialist with a market value near CA$8.27 billion. It builds recurring software platforms for healthcare, education, government and financial services, generating about €1.75 billion from software and programming. The analyst consensus narrative argues the company's acquisition-led growth strategy is key. "Continued capital deployment into acquisition led growth in vertical market software, as seen in Topicus.com's focus on buying specialized software businesses, can add new revenue streams and support higher free cash flow if integration keeps operating costs efficient," the narrative states. The analysis suggests the real swing factor is how pressure on future profitability filters through to cash generation.
Hardware and services exposure
The second company is Celestica, a CA$40.19 billion manufacturing and hardware platform specialist. It builds complex tech gear for cloud providers, AI players and industrial clients, generating about US$14.78 billion from Connectivity & Cloud Solutions and US$3.45 billion from Advanced Technology Solutions. For investors seeking direct exposure to AI and cloud hardware, Celestica sits where hyperscaler demand meets large-scale manufacturing. The analyst narrative argues this mix is reshaping its growth profile. "Accelerated demand for advanced networking and AI infrastructure by hyperscaler customers is now flowing through Celestica's CCS outlook, with management guiding to approximately 85% CCS revenue growth in 2026 and expecting companywide revenue growth to accelerate further in 2027, which can support higher operating leverage and earnings," the narrative says. The key question is how a surge in AI-linked orders interacts with capital intensity and customer concentration to shape future margins.
The third is Montreal-based CGI, a CA$23.9 billion IT services group. It helps large clients modernize systems through cloud migration, AI-enabled automation and managed IT services. The appeal in this screen is not a flashy story but the combination of broad digital transformation work with a growing tilt toward automation and AI, which the market may still be underpricing. "Expanding integration of generative AI and automation now includes management reporting that about 65% of CGI IT solutions incorporate AI-enabled intelligent automation and that every new managed services proposal embeds advanced AI by default, which can support higher value contracts, effort savings and margin resilience," the analyst consensus narrative reports. The analysis focuses on what happens to CGI's earnings power if a tightly linked factor in how those AI-rich contracts are priced and delivered shifts slightly.