3 Canadian Tech Stocks Trading At Least 35% Below Fair Value

AI chip leaders like Samsung and TSMC are reporting record results from demand for AI hardware, yet many Canadian technology stocks tied to software, services and equipment still trade as if this surge barely exists. That gap creates fertile ground for investors hunting mispriced growth potential. This article walks through three Canadian tech stocks from a value focused screener that could merit a closer look now.

These three ideas are only a starter pack from the undervalued tech theme, and the full screen surfaced 13 more companies with equally compelling narratives that do not fit into this short article.

If you want to move beyond examples and actually identify and analyze your own highest conviction opportunities in the space, head straight into the Undervalued Tech screener.

Lightspeed Commerce (TSX:LSPD)

Lightspeed Commerce powers cloud-based commerce and payments for retailers, restaurants and golf operators, which fits the Undervalued Tech theme through its subscription and transaction software model. The business generates about $1.2b in Software & Programming revenue and carries a market value near $1.9b.

For investors searching this theme, Lightspeed Commerce offers a pure play on cloud commerce and payments where the key question is how quickly its model can convert growing usage into durable profits.

"Accelerating adoption of digital payments and cloud-based platforms in retail and hospitality, which are core to Lightspeed's growth strategy, continues to boost subscription and transaction-based revenue, supporting an expanding total addressable market and steady revenue growth."

What happens to the share price depends heavily on how one unresolved pressure on future margins and free cash flow eventually lands.

That pressure point on future profitability is exactly what the full narrative for Lightspeed Commerce unpacks, separating short term noise from the ways Lightspeed Commerce could scale its model.

Celestica (TSX:CLS)

Celestica is a CA$60.9b hardware and supply-chain specialist whose Undervalued Tech angle comes from designing and assembling infrastructure for cloud, AI and other complex electronics, with about US$12.3b from Connectivity & Cloud Solutions and roughly US$3.3b from Advanced Technology Solutions.

Celestica gives the Undervalued Tech theme direct exposure to the build out of AI and cloud hardware, where complex networking gear and rack scale systems can matter more than a flashy consumer app.

"Accelerated demand for advanced networking and AI infrastructure by hyperscaler customers is driving rapid growth in Celestica's CCS segment, with multiple new 800G and upcoming 1.6T program ramps, supporting robust revenue expansion and greater operating leverage over the next 12 to 24 months."

What happens to future margins and cash generation hinges on how one pressure point in Celestica’s AI data center contracts ultimately gets resolved.

This contract risk is exactly what the full narrative for Celestica unpacks. It shows how Celestica’s AI ramp, pricing power and capital choices could interact over the next few years.

CGI (TSX:GIB.A)

CGI is a Montreal based IT and business process services giant that helps governments and enterprises modernize legacy systems into cloud based, AI ready platforms, generating about CA$20.4b across diversified regional units. Western and Southern Europe lead at roughly CA$3.0b, and the business is backed by a CA$20.1b market value.

For the Undervalued Tech theme, CGI matters because its bread and butter work is moving complex clients into modern, cloud centric and AI enabled systems. In these areas, long contracts and trusted roles can quietly reshape earnings power over time.

"Rapid adoption of AI in mission critical systems, supported by CGI's advanced AI investments, AI-enabled software delivery life cycle and high client interest in AI advisory and integration, positions the company to capture higher value projects that can support revenue and potentially lift earnings quality over time."

What ultimately happens to CGI’s valuation depends on how one subtle shift in its mix of long term managed services affects margins and cash generation.

That mix shift question is exactly what the full narrative for CGI tackles, mapping how CGI’s AI work, contract structure and cash profile could be quietly accelerating under the surface.

Curious About What You Might Be Missing

Fresh ideas move fast. Breakout stories gain momentum, slow movers get caught dropping, and under the radar for now rarely lasts. Scan the next wave and get in early.

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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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