The Motley Fool

3 AI-Focused Tech Stocks to Hold for the Next 20 Years

There is justifiable interest in artificial intelligence (AI) development for investors as we look ahead to the next decade. AI has the potential to transform various industries and revolutionize business processes. As with automation, the development of this technology also has huge disruptive potential.

Canada has emerged as a leader in AI research and development. Today we will look at three TSX-listed tech stocks that have made AI technology development a major focus. Each of these stocks is well worth holding for the long term.

Kinaxis (TSX:KXS)

Kinaxis provides software solutions for sales and operations planning and supply chain management. Shares of Kinaxis had climbed 17.9% in 2019 as of close on April 16. The stock was still down 6.1% from the prior year.

The Government of Canada has poured significant resources into the development of an AI-powered Supply Chains Supercluster. In December the federal government announced the conclusion of a $230 million contribution agreement with SCALE AI.

This will enable SCALE AI to initiative collaborative projects that will accelerate the development of AI-powered supply chains. The Canadian-based Supply Chains Management Association (SCMA) projected that this has already generated over $400 million in new investment potential for the private sector.

In 2018, Kinaxis won a 2018 Digital Innovation Award for its Self-Healing Supply Chain, which enables routine tasks to be automated with AI and machine learning. Kinaxis is forecasting a significant boost in revenue for fiscal 2019. The stock is a nice buy below the $80 price mark.

BlackBerry (TSX:BB)(NYSE:BB)

BlackBerry stock had climbed 27.9% in 2019 as of close on April 16. Shares came at a fantastic price back in January, but even now the stock comes at a fair price considering its year-over-year performance. The company has made a successful transition into software and has carved out a nice footprint in the fast-growing cybersecurity market.

In February BlackBerry completed its $1.4 billion acquisition of Cylance. Cylance has utilized machine learning and artificial intelligence to bolster its cybersecurity offerings.

BlackBerry expects its embeddable AI technology will accelerate the development of BlackBerry Spark. BlackBerry Spark is the secure communications platform for the Internet of Things (IoT).

The AI and cybersecurity markets are positioned for massive growth over the next decade, and BlackBerry is poised to benefit from these trends.

Shopify (TSX:SHOP)(NYSE:SHOP)

Shopify is a cloud-based platform that offers multichannel offerings to businesses. Shares of Shopify were up over 50% as of close on April 16. The stock has soared over 600% over the past three years.

AI development in the marketing world will shape trends in the coming decades. It’s not just companies with massive cash to burn that can benefit from this development.

Shopify is making AI tools available to its many merchants, which will give medium and small businesses access to this critical technology. For example, personalization at scale has been proven to improve sales. Of course, companies are also trying to navigate a tricky environment, as many consumers are still uncomfortable with this approach.

Shopify has established itself as an e-commerce giant as we approach the end of this decade. The development of AI technology will dramatically improve its earnings potential and that of its merchants as e-commerce retail continues to grow.

Forget Apple! Buy This TSX Stock Instead…

There’s something crucial you need to know about Apple’s stock today, especially if you already own it, know someone who does, or have even thought about buying it.

This revolutionary new technology involved in “Project Titan” should make any investor’s ears perk up.

But you may want to consider investing in a TSX-traded company that’s poised to have a drastically larger role in this new tech, and yet is less than 1% the size of Apple.

Discover why we’re especially excited about this tech opportunity for Canadian investors like yourself.

Click here to learn more!

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of BlackBerry, Shopify, and Shopify. Shopify and BlackBerry are recommendations of Stock Advisor Canada.

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