Canadian tech stocks are undergoing a notable transformation in investor sentiment. With the easing of inflation, both U.S. and Canadian central banks are poised to implement rate cuts later in the year. This anticipated shift is likely to stimulate economic activity, positioning tech stocks as an appealing choice for investors pursuing growth opportunities. Here, we explore two TSX-listed tech stocks that shine for their potential to yield significant gains in 2024 and beyond, particularly for those with a focus on long-term investments.


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OpenText: Harnessing the Power of Enterprise Information Management

OpenText (TSX:OTEX) is a tech gem flying somewhat under the radar. With a market capitalization of $15.13 billion and headquarters in Waterloo, OpenText specializes in developing and selling enterprise information management software. Positioned as the fourth-largest Canadian tech company in 2022, OpenText serves a diverse client base globally, including entities of all sizes in the public and private sectors.


The company is poised to capitalize on the rising trend of artificial intelligence (AI) integration, a move that could significantly enhance its future prospects. Despite facing challenges during the pandemic, OpenText managed to achieve a remarkable 59.3% increase in sales between fiscal 2018 and 2023. Over the last five years, it improved adjusted earnings by 28.5%. With AI-driven solutions enhancing its offerings, OpenText appears to be on a trajectory towards a brighter future, currently trading at $55.72 per share.

Lightspeed Commerce: Illuminating the E-commerce Landscape

Lightspeed Commerce (TSX:LSPD) is a well-known tech stock that made its debut on the TSX in 2019. With a market capitalization of $3.89 billion, Lightspeed Commerce provides a cloud-based e-commerce platform catering to merchants of all sizes across over 100 countries worldwide.


Despite experiencing a share price decline triggered by a short-seller report and a broader tech sector selloff, Lightspeed Commerce has maintained a solid business foundation. In the fiscal second quarter of 2024, the company achieved a 25% year-over-year increase in revenue, with transaction-based revenue growing by an impressive 36% compared to the same period last year.


In a strategic move, Lightspeed Commerce has begun selling its point-of-sale (POS) and payment solutions as a unified offering since the start of fiscal 2024. This approach is expected to drive higher customer spending and retention, presenting favorable prospects for both the stock and investors. Currently priced at $25.46 per share, Lightspeed Commerce is positioned as an attractively priced opportunity not to be overlooked.


As the tech landscape undergoes transformations and economic conditions evolve, OpenText and Lightspeed Commerce emerge as promising players with the potential to deliver substantial returns for investors seeking growth and resilience in the tech sector.