Canadian growth stocks have benefitted from declining interest rates, easing inflation, and investors' positive outlook on artificial intelligence (AI) and digital transformation. While many Canadian stocks have already witnessed a rally, a few fundamentally strong growth stocks will likely sustain momentum due to the strength in demand trends. Against this backdrop, here are the two growth stocks that could skyrocket in 2025 and beyond.

Celestica

Celestica (TSX:CLS) has emerged as one of the top-performing Canadian growth stocks in 2024, with strong potential to soar in 2025 and beyond. The company is capitalizing on increased spending in AI infrastructure, mainly through its Connectivity & Cloud Solutions segment, which focuses on next-gen storage, servers and communications hardware. This segment is expected to drive solid growth, bolstering Celestica's overall financial performance.

A key growth catalyst is the company's focus on AI and machine learning (ML) servers. A major customer has already secured next-generation liquid-cooled, custom ASIC-based server programs. Production is slated to ramp up in mid-2025, with additional programs set for 2026 and beyond. Celestica is also in talks with other hyperscalers for future projects, further expanding its AI/ML offerings.

The company is heavily investing in hardware platform solutions (HPS) for modular AI/ML systems and rack-scale solutions, catering to the growing need for customizable AI silicon. With hyperscaler spending on data centre hardware expected to rise, demand for Celestica's advanced 400G and 800G networking switches, servers, and storage solutions will follow.

In addition to AI, Celestica's recovery in its Advanced Technology Solutions (ATS) business, including the aerospace, defence, and industrial sectors, will help diversify its revenue streams. The company is optimistic about returning to growth in its Industrial and Smart Energy segments in 2025, driven by increased demand.

With strong prospects across various sectors, Celestica is well-positioned for continued growth, driven by favourable trends in AI, green energy, and defence spending.

Bombardier stock

Bombardier (TSX:BBD.B) is another promising stock that can deliver above-average returns over time. The leading aviation company is witnessing solid demand and deliveries of its business jets. Thanks to its impressive financials, Bombardier stock has risen about 87% over the past year, and the company still has more room to run, led by a solid backlog and higher deliveries.

Besides higher aircraft deliveries, the company is poised to gain from its extensive aftermarket and support facilities network, focus on innovation, and diversification across defence, services, and the pre-owned aircraft markets. This will likely add to the company's revenues and help improve profitability over time.

Furthermore, Bombardier's efforts to improve liquidity and lower its debt load will likely provide financial flexibility, positioning it well to invest in new opportunities and accelerate growth. Also, easing inflation, a likely cut in interest rates in 2025, and steady growth in developed economies could further benefit the company.

Overall, the company is well-positioned to generate strong cash flows in the coming years. It expects to deliver more aircraft, witness stable order activity, and benefit from incremental aftermarket growth. These factors will drive its stock price higher and enable it to deliver notable returns.