Missed Out on NVIDIA? My Best AI Stock to Buy and Hold

Written by Jitendra Parashar at The Motley Fool Canada

NVIDIA (NASDAQ:NVDA) has been the stock everyone wishes they had bought earlier. The numbers tell that story clearly. Notably, shares of the American semiconductor giant have rocketed by nearly 1,080% over the last three years, and its market cap is now measured in trillions, making investors who got in early some of the biggest winners of the decade. This is all because NVIDIA’s chips sit at the heart of today’s artificial intelligence (AI) boom.

But even with that success, new investors are hesitating as NVDA stock already carries a massive valuation with a multi-year rally behind it.

That’s why it makes sense to zoom out a little and look at the broader AI ecosystem. NVIDIA may design the most powerful AI processors, but those chips still need to be deployed inside complex data centre systems at a massive scale. This is exactly where my top AI stock pick starts to matter just as much.

In this article, I’ll discuss Celestica (TSX:CLS), which I consider one of the best AI stocks today. The company benefits directly from NVIDIA-driven demand while offering a unique risk-and-reward setup for long-term investors.

To understand why Celestica deserves attention here, let’s first look at what the company actually does within the AI ecosystem. This Toronto-headquartered company mainly designs and manufactures hardware platforms while also providing supply chain and…