AI impact on Canadian Technology Stocks:

What happened the last 3 months:

AI got too hyped, then people got nervous. Stocks in Canadian tech companies like Shopify and Kinaxis had been riding high because everyone expected AI to make them more profitable. Then reality hit — investors started asking “wait, is AI actually hurting these companies by replacing what they sell?” That fear caused a massive sell-off. The Canadian tech index dropped 20%+ while the broader market was actually up 6%. That gap tells you the fear was specifically about tech, not the economy overall.

What’s coming next 3 months:

Probably a slow, uneven recovery — not a rocket ship bounce. Here’s why:

• Companies like Celestica (makes hardware for AI data centers) have real orders and real revenue — those will likely recover
• Shopify and Kinaxis are solid businesses but their stocks are still expensive, so they need to prove AI is making them more money before investors pile back in
• The biggest wildcard is whether big US tech companies (Google, Microsoft, Amazon) keep spending billions on AI infrastructure. If they pump the brakes, Canadian suppliers feel it immediately

The simple takeaway: Canadian tech got punished because of fear, not because the businesses collapsed. The fear is partially justified — some companies will lose to AI. But the ones with clear AI revenue will bounce back. The rest? It depends on their next earnings reports.