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

online shopping
Tech Stocks

1 Hidden Catalyst That Could Ignite Shopify Stock

Here's why Shopify (TSX:SHOP) ought to remain a top growth stock investors continue to focus on for the long haul.

Read more »

Man considering whether to sell or buy
Tech Stocks

WELL Stock: Buy, Sell, or Hold?

WELL stock has a lot of upside as the company is likely to continue to grow, posting positive earnings in…

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Tech Stocks

Finally Going Private: What Should Nuvei Investors Do Now?

Understanding the reasons and factors behind a public company going private can help investors make an educated decision.

Read more »

woman data analyze
Tech Stocks

1 Stock I’d Drop From the “Magnificent 7” and 1 I’d Add

Tesla (NASDAQ:TSLA) stock is part of the Magnificent Seven, but Shopify (TSX:SHOP) is growing faster.

Read more »

close-up photo of investor Warren Buffett
Tech Stocks

3 Stocks Warren Buffett Owns That Should Be on Your List, Too

Investing in quality Warren Buffett stocks such as Mastercard can help you generate outsized gains in the upcoming decade.

Read more »

Man data analyze
Tech Stocks

Missed Out on NVIDIA? My Best Growth Stock Pick to Buy and Hold

Despite its consistently improving fundamental outlook, this Canadian growth stock has seemingly been ignored by most investors for a long…

Read more »

A worker drinks out of a mug in an office.
Tech Stocks

The Best Stocks to Invest $5,000 in Right Now

Here's why investing in blue-chip stocks such as Visa should help you deliver outsized gains in 2024 and beyond.

Read more »

Young woman sat at laptop by a window
Tech Stocks

3 Stocks I Think Every Canadian Should Own in 2024

Here's why Canadian investors should hold blue-chip stocks such as Microsoft in their equity portfolios in 2024.

Read more »