Investing $3,000 in These Artificial Intelligence Stocks Is a Smart Move

Canadian investors who are on the hunt for growth should target artificial intelligence stocks like Kinaxis Inc. (TSX:KXS) and others in 2020.

| More on:
Businessman holding AI cloud

Image source: Getty Images

Canadian investors have had a lot to digest in the first half of 2020. From oil price wars to a global pandemic, these are dangerous waters to traverse. However, investors should not remain on the sidelines. Today, I want to discuss why an investment in top artificial intelligence stocks could be worth a fortune down the road. Let’s dive in.

One top artificial intelligence stock that has soared in 2020

In late 2019, I’d discussed why Kinaxis (TSX:KXS) was perfect for investors who wanted exposure to artificial intelligence development. Shares of Kinaxis have climbed 74% in 2020 as of close on June 11. The company offers supply chain and operations planning software.

Kinaxis has pushed artificial intelligence and machine learning development to optimize its software product. This has made it highly sought after, winning the company contracts with top companies like Toyota Motors, Unilever, Ford, and others. On its website, Kinaxis explains how AI and machine learning can improve forecast accuracy.

For example, methods like demand sensing can generate superior forecast that go beyond historical data. Moreover, AI and machine learning can be used to predict lead times. This is an extremely difficult task in complex supply chains, which can lead to stale assumptions that can pollute the whole.

This e-commerce company is utilizing AI to boost its merchants

Shopify (TSX:SHOP)(NYSE:SHOP) is an Ottawa-based e-commerce company that should require no introduction. Shares of Shopify have climbed over 140% from the prior year. Meanwhile, Shopify has managed to steadily grow its merchants by offering effective services on its platform. The Shopify App store enables its merchants to send automated product recommendations and AI-powered emails.

In May, Shopify announced that its AI-powered fulfillment network was now accepting merchant applications. The fulfillment network utilizes machine learning to “ensure timely deliveries and lower shipping costs,” according to the company. Fulfillment systems are typically reserved for the world’s largest companies. As part of its bold initiative, Shopify aims to make this artificial intelligence accessible to every merchant.

The stock has dropped 5.9% month over month as of close on June 11. Market turbulence has returned in mid-June. Value investors should keep an eye on Shopify, as those who have bought the dips in the past have been richly rewarded.

How BlackBerry bet big on AI

BlackBerry (TSX:BB)(NYSE:BB) faced challenges in the 2010s, but it has managed to complete its transition into a software company. It has established a footprint in cybersecurity and in the automated vehicle market with its QNX software. Shares of BlackBerry have climbed 20% over the past three months.

In early 2019, BlackBerry completed the acquisition of Cylance. This added Cylance’s artificial intelligence and machine learning technology to its end-to-end secure communications portfolio. It stated that this would accelerate the development of BlackBerry Spark, the secure communications platform for the Internet of Things.

The company had a solid finish to fiscal 2020. Its integration of Cylance has taken time but paid off to close out the year. In the fourth quarter, adjusted BlackBerry Cylance revenue reached $52 million over $4 million in the prior year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Ford. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends BlackBerry, BlackBerry, and KINAXIS INC.

More on Tech Stocks

work from home
Tech Stocks

Could Lightspeed Stock Be a Big Winner in 2023?

Investors can capitalize on Lightspeed’s low valuation and benefit from the recovery in its price.

Read more »

Tech Stocks

TFSA Passive Income: How I’m Investing to Make $2,000/Year From Dividends

I am increasing my dividend income by investing in dividend stocks like the Toronto-Dominion Bank.

Read more »

Electric car being charged
Tech Stocks

Is Now The Time to Buy EV Stocks?

EV stocks may be down now, but don't count them out. They'll soon be back up again, so now may…

Read more »

Happy shoppers look at a cellphone.
Tech Stocks

Better Buy: Amazon vs. Apple Stock

While both Amazon and Apple have bright long-term prospects, Apple stock looks like the best tech company to invest in…

Read more »

A stock price graph showing declines
Tech Stocks

Has Blackberry Stock Finally Stopped the Slide?

Blackberry has not yet delivered the kind of financial results that we know it can, but this is about to…

Read more »

Car, EV, electric vehicle
Tech Stocks

Chinese Stocks are Soaring: This TSX Stock Could Gain

Magna International stock could benefit from China's economic re-opening.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

1 Oversold Growth Stock to Buy for Major Returns in 2023

This growth stock could be the best Canadian stock to buy now for 2023, with shares possibly doubling back to…

Read more »

Hands holding trophy cup on sky background
Tech Stocks

Could BlackBerry Stock Be a Big Winner in 2023?

BlackBerry (TSX:BB) stock more than halved last year amid the tech stock selloff. Could 2023 be a winning year for…

Read more »