The Toronto Stock Exchange’s (TSX) annual list of top-performing public companies includes Canadian stock star Celestica and four other tech companies across aerospace, defence, and digital infrastructure.
The news: The stock exchange released its annual TSX30 list today, which ranks the top 30 companies by three-year, dividend-adjusted share performance. Toronto electronics and AI infrastructure company Celestica placed first on the list for the second year in a row, joined by aerospace and defence technology companies MDA Space, Firan Technology Group Corporation, and Telesat.
The list also included former Bitcoin mining company Hut 8, which has previously partnered with Eric Trump and Donald Trump Jr. and now supplies data centre infrastructure. The tech-adjacent advanced materials company 5N Plus also made this year’s ranking.
From the source: Celestica saw its share price rise by a staggering 2,590 percent over the past three years, as its market capitalization rose from $1.9 billion CAD to nearly $60 billion at the end of the second quarter. In a statement, CEO Rob Mionis attributed the growth to “enabling critical AI data center infrastructure and advancing technologies in high-growth markets.”
The context: Canadian tech companies are generally not as well-represented on the TSX30 list, compared to categories like mining, which made up 60 percent of this year’s list. Despite their relatively small representation, tech companies added $85.3 billion in market capitalization over three years, according to the TSX, the second-largest contribution of any sector featured in this year’s ranking.
Final thought: Tech companies with hardware plays were the tech sector’s only entrants, as e-commerce giant Shopify, FinTech company Propel, and software company VitalHub dropped off the list this year. Many software companies were hit hard this year by investor fears of AI disrupting their businesses, leading to broad sell-offs. However, companies like Celestica and Hut 8, which sell the hardware to construct AI data centres and associated cloud infrastructure, saw their market caps increase significantly.
Feature image courtesy TMX Group.