AI focused capital spending has been a major driver of recent US economic growth, and Canadian technology stocks often plug into the same global demand trend. When investors rush toward the headline AI giants, smaller Canadian tech businesses can be left trading at muted valuations. That gap can interest anyone hunting for mispriced opportunities. This article highlights three Canadian tech stocks that currently screen as potentially undervalued.
The three stocks below are just a small sample of the idea. The full screen surfaced 13 more tech companies with equally compelling narratives that are not covered here. To hunt for your own high conviction setups, head straight into the Undervalued Tech screener to identify, compare, and analyze undervalued opportunities across the sector.
Lightspeed Commerce (TSX:LSPD)
Lightspeed Commerce builds cloud-based software and payments tools for retailers, restaurants, and other merchants, which fits cleanly with the Undervalued Tech theme through its recurring subscription and payments lines.
Lightspeed Commerce generates about US$1.24b from software and programming subscriptions and payments services, while its hardware and financial offerings support that core platform. The stock's market value is around CA$2.0b, putting it in mid cap territory on the TSX.
For this screener, Lightspeed Commerce matters because its software plus payments engine targets recurring income from everyday transactions, which is exactly where many investors look for mispriced tech opportunities.
"Although Lightspeed Commerce is targeting higher payments penetration with transaction revenue and Lightspeed Capital, the recent hardware gross margin turning negative due to heavy discounting and freight costs risks offsetting those gains."
What happens to the story now largely hinges on how a single pressure inside that revenue mix shapes future profitability and investor confidence.
If that mix shift matters to you, read the full narrative for Lightspeed Commerce to see how payments momentum could outweigh hardware pressure and reshape the investment case.
Celestica (TSX:CLS)
Celestica supplies design rich hardware platforms and manufacturing services that sit behind hyperscaler data centers and AI racks, which links it directly to the Undervalued Tech theme even though it still serves a wider mix of industrial, aerospace, HealthTech, and communications clients.
Celestica generates about $3.45b from Advanced Technology Solutions and roughly $14.78b from Connectivity & Cloud Solutions, giving it substantial exposure to cloud and AI infrastructure customers, and the business carries a market value around CA$48.97b.
For investors following the AI hardware build out, Celestica offers a way to play rack scale infrastructure without owning a chip designer or a cloud giant directly.
"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."
What ultimately matters is how one capital heavy push behind this AI build out shapes future cash generation and valuation resilience.
That capital push is only part of the picture, and the full narrative for Celestica reveals how Celestica's AI build out, contract depth, and risks all tie together.
CGI (TSX:GIB.A)
CGI is a global IT and business process services group that fits the Undervalued Tech theme through its work modernizing client software, cloud infrastructure, and automation, while still drawing income from a broad mix of consulting, systems integration, and managed services across regions.
CGI generates about CA$2.48b from U.S. Commercial and State Government work, CA$2.97b from Western and Southern Europe, and CA$2.27b from the U.K. and Australia, with Canada contributing roughly CA$2.08b, and the group carries a market value near CA$22.9b.
"The ongoing acceleration in digital transformation initiatives, particularly in cloud migration, AI-driven automation and data analytics, continues to boost client demand for CGI's managed services and proprietary IP across both public and private sectors, which is likely to support sustained revenue growth and a rising mix of recurring earnings."
What really moves the needle from here is how one quiet shift inside CGI's higher value services mix affects long term profitability and contract quality.
That shift is already reshaping CGI's risk reward profile, and the full narrative for CGI explains how accelerating digital work, contract depth, and margins could interact in the period ahead.
Seeking Fresh Alternatives Before They Fly
Markets move fast and the sharpest opportunities often break out while attention is elsewhere. Keep your curiosity working before the crowd catches up and prices move. Consider exploring ideas that interest you.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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