The S&P/TSX Data Expertise Capped Index, a proxy for Canada’s prime tech shares, has delivered strong beneficial properties. It has soared almost 41% 12 months up to now and delivered a staggering 149% return over the previous 5 years, reflecting the sector’s progress potential and skill to create wealth.

The rising adoption of synthetic intelligence (AI), rising e-commerce penetration, and ongoing digital transformation are key catalysts. These tendencies reshape industries and create vital progress alternatives for Canadian tech companies.

For buyers trying to capitalize on this momentum, listed here are my prime two Canadian tech shares to purchase now. The businesses have sturdy fundamentals and promising progress potential that would assist you to obtain above-average returns.

Tech inventory #1

Shopify (TSX:SHOP) is a prime tech inventory that’s benefitting from ongoing digital transformation. The omnichannel commerce platform supplier has been persistently delivering strong financials. Shopify’s gross merchandise quantity (GMV) progress exceeded 20% up to now 5 consecutive quarters. Income surged by 26% within the third quarter (Q3) of 2024, working revenue greater than doubled from final 12 months, and the corporate’s free money stream margin expanded to a formidable 19%.

These numbers spotlight Shopify’s potential to steadiness progress and profitability, strengthening its aggressive positioning within the e-commerce sector. Shopify’s revolutionary merchandise are taking part in a vital function in its progress. Its fee options have gained vital traction, with penetration reaching 62% in Q3. Store Pay, its flagship fee service, facilitated $17 billion in GMV, a exceptional 42% year-over-year improve, demonstrating the power and attraction of Shopify’s built-in ecosystem.

Past funds, Shopify continues to reinforce its platform by increasing gross sales and advertising and marketing channels. As an illustration, its integration with YouTube Purchasing’s associates program and an prolonged partnership with PayPal showcase Shopify’s dedication to diversifying its choices and reaching new service provider and buyer segments.

Wanting forward, Shopify’s complete options, together with Shopify Funds and Shopify Capital, are poised to drive additional progress in its service provider base, GMV, and gross fee quantity (GPV). Its point-of-sale (POS) system is gaining momentum, benefiting from elevated adoption in offline retail and B2B channels. Worldwide enlargement of fee options and broader product choices additionally current vital progress alternatives.

Shopify can also be leveraging synthetic intelligence (AI) to reinforce its platform and optimize operations. Additional, its shift to an asset-light enterprise mannequin positions Shopify for sustainable earnings progress and can help its share value.

Tech inventory #2

Celestica (TSX:CLS) is a prime TSX tech inventory to capitalize on the fast-growing AI market. The corporate gives provide chain and {hardware} platform options and digital manufacturing companies. Furthermore, it’s benefitting from increased funding in AI infrastructure.

Its inventory is up over 233% 12 months up to now and gained about 1,177% within the final 5 years, reflecting stellar demand for its {Hardware} Platform Options (HPS). The momentum in Celestica’s HPS section exhibits no indicators of slowing, as surging investments in knowledge centres—encompassing servers, networking tools, and storage—are anticipated to maintain the necessity for Celestica’s choices.

Celestica’s Connectivity & Cloud Options section, which focuses on merchandise resembling next-generation storage, servers, and communications {hardware}, is prone to witness strong progress. Demand for networking switches, notably the superior 400G and 800G fashions, is boosting the corporate’s monetary efficiency. Furthermore, the server enterprise is poised to realize from the rising demand for high-performance computing platforms. In the meantime, AI knowledge centre buildouts will possible gas demand for its storage options.

Furthermore, Celestica may even possible profit from increased industrial air journey and elevated defence spending. In abstract, Celestica is prone to profit from AI-driven tailwinds and power in its Aerospace and Defence division.