2 Top Artificial Intelligence Stocks to Buy in Canada

Artificial intelligence stocks such as Kinaxis (TSX:KXS) could deliver stellar returns over the long term. Keep an eye on this sector.

| More on:
Businessman holding AI cloud

Image source: Getty Images

The age of artificial intelligence is upon us. Soon, artificial intelligence platforms will code our websites, write our articles, and generate images. Of course, AI’s applications stretch far beyond writing. Experts expect the technology to be pervasive and exponentially powerful, which means entire sectors of our economy could soon be automated. This is, unsurprisingly, a multi-trillion-dollar opportunity. 

With that in mind, here are the top two Canadian artificial intelligence stocks you can add to your portfolio today. 

Open Text

Enterprise software giant Open Text (TSX:OTEX)(NASDAQ:OTEX) is starting to look like the best artificial intelligence stock in the country. Open Text’s platform is already pervasive in the corporate world.

In recent years, the team has been trying to use open-source machine learning models and the data collected from its corporate clients to create a prediction model called OpenText™ Magellan™. 

Companies like Legal & General and Westpac have already deployed the powerful platform to analyze what their customers are saying on social media and create better products based on its predictions of where consumer demand is heading. It’s the future, and it’s here today. 

Open Text’s partnership with Google, the godfather of corporate AI, amplifies the company’s chances of success. While the company is worth $16 billion today, I believe further traction in corporate artificial intelligence could add several billion more in shareholder value over the next few years. Keep an eye on it. 


Just like Open Text, Kinaxis (TSX:KXS) is an enterprise software provider focused on mega-corporations. Unlike Open Text, Kinaxis focuses on the supply-chain rather than content management. 

Kinaxis’s platform is deployed by some of the largest corporations in the world to manage their supply chains, costs, and production. This industrial data is now being used to perfect Kinaxis’s artificial intelligence models that could enhance the platform further. 

Earlier this year, the team acquired AI-based retail and CPG demand planning provider Rubikloud. The firm provides AI-based demand forecasting, promotion, pricing, and assortment optimization. According to the press release, the acquisition will help enhance Kinaxis’s flagship RapidResponse platform to better serve retail clients. 

This acquisition demonstrates Kinaxis’ potential to integrate artificial intelligence into its existing platform and drive higher sales from existing customers. Over the long term, this should create immense value for shareholders. The stock is already up 114% year to date. There’s plenty of room for further expansion. 

Foolish takeaway

There’s finally enough of computing power and data in the world to create a machine that learns by itself. The best part is that this learning could be exponential. That’s the promise of artificial intelligence.

If you’re a growth investor, you simply cannot afford to overlook the impact of artificial intelligence. Enterprise software providers, such as Open Text and Kinaxis, already have thousands of corporate clients and decades of relevant data. Now, they can acquire smaller AI firms and deploy the data to create unique solutions that generate immense value. 

Adding these AI stocks to your portfolio early could help boost your portfolio over the long term. 

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.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. David Gardner owns shares of Alphabet (A shares) and Alphabet (C shares). The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool recommends KINAXIS INC, Open Text, and OPEN TEXT CORP.

More on Tech Stocks

Tech Stocks

Your Future Self Will Thank You for Buying Lightspeed Stock in 2023

Here’s why you may want to add LSPD stock to your portfolio in 2023 to hold it for the long…

Read more »

a person watches a downward arrow crash through the floor
Tech Stocks

Don’t Wait for a Market Crash: These 2 Top Stocks Are on Sale

Waiting for a market crash can take away the opportunity to buy early in the market rally while growth stocks…

Read more »

Coworkers standing near a wall
Tech Stocks

What’s Next for Magnet Forensics Stock After Hitting a 52-Week High Last Week?

While TSX tech stocks have lost around 30% last year, Magnet Forensics stock has soared 82%.

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Tech Stocks

Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

Got $500 to invest? Consider buying these stocks that are too cheap to ignore.

Read more »

Growing plant shoots on coins
Tech Stocks

2 Growth Stocks to Invest $100 in Right Now

Even with the market riding a bullish rebound, you don’t need a whole lot of cash to invest in growth…

Read more »

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 »