Top 3 Canadian Undervalued Tech Stocks To Watch In October 2026

AI infrastructure stocks are under pressure as higher borrowing costs and selective demand call into question which tech projects actually deserve fresh capital. That kind of scrutiny can leave some Canadian technology shares trading below what their cash flows or assets might justify. For patient investors, mispricing is where opportunity starts. This article walks through three undervalued Canadian tech stocks that screen well on price and quality.

The three stocks profiled below are just a sample set, and the full screen surfaced 13 more Canadian tech companies with equally compelling narratives that are not covered in this article.

If you want to identify and analyze your own highest conviction ideas in this space, head straight to the Undervalued Tech screener.

Lightspeed Commerce (TSX:LSPD)

Lightspeed Commerce is built around a cloud commerce and payments platform for retailers, restaurants, and golf venues. This is exactly the kind of scalable software and services this Undervalued Tech screener is trying to surface.

Lightspeed Commerce generates about US$1.24b from software and programming, anchored in its commerce and payments SaaS platform, and has a market value of roughly CA$2.0b.

"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."

The thesis may change if one quiet but growing line of business affects how quickly those pressure points feed through to margins.

That quiet shift is exactly what the full narrative for Lightspeed Commerce unpacks, revealing how payments momentum and hardware pressure could be masking where Lightspeed Commerce is really heading next.

Celestica (TSX:CLS)

Celestica builds and runs complex hardware and supply chains for tech, industrial, and HealthTech clients, with its Connectivity and Cloud Solutions arm directly tied to hyperscaler data centers and AI infrastructure. The business generated about US$3.3b from Advanced Technology Solutions and US$12.3b from Connectivity and Cloud Solutions, and the stock carries a market value near CA$43.3b.

Celestica gives you a pick-and-shovel angle on AI hardware, where the focus is not chips themselves but the racks, networking gear, and manufacturing muscle that make those chips useful at scale.

"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 really shapes the upside is how one concentrated pressure point plays out for future cash generation and earnings quality.

That pressure point is exactly where the full narrative for Celestica shows how supply concentration, capital intensity, and hyperscaler demand could be decoupling Celestica’s earnings path from typical hardware cycles.

CGI (TSX:GIB.A)

CGI Inc. is a global IT and business process services provider whose managed IT and cloud offerings, from end-to-end migration to FinOps-enabled cloud management, plug it neatly into the Undervalued Tech theme while still being part of a broader consulting and outsourcing business. The group generates billions in revenue across segments such as Western and Southern Europe at about CA$3.0b, U.S. commercial and state government on roughly CA$2.5b, U.K. and Australia around CA$2.3b, and U.S. Federal work near CA$2.1b, with Canada contributing about CA$2.1b and other regions adding further scale. CGI carries a market value of roughly CA$23.5b.

For investors hunting for tech exposure that is closer to recurring service contracts than headline-grabbing hardware, CGI combines cloud-heavy managed services, long government and enterprise relationships, and a sizeable global footprint that fits neatly with the Undervalued Tech screen.

"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."

What happens to CGI’s earnings power hinges on how one quiet shift in the mix of long term contracts ripples through margins and cash generation.

That contract mix shift is exactly what the full narrative for CGI breaks down, showing where CGI’s AI-heavy services could accelerate earnings power beyond what headline margins suggest.

Seeking Alternatives Before Momentum Flies

Fresh opportunities rarely stay quiet for long. Breakout stories gain momentum, prices move, and late arrivals get caught chasing. Scan these under the radar ideas while it matters and consider them before attention broadens.

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