3 Top AI Stocks to Buy Now

Canadians should look to buy and hold top artificial intelligence (AI) stocks like Kinaxis Inc. (TSX:KXS) for the long term.

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In the beginning of 2021, I’d looked at some of the top stocks to buy for investors who want exposure to artificial intelligence development. This summer, Grand View Research released a market report on the AI market. It projected that the global artificial intelligence market would deliver CAGR of 40.2% from 2021 to 2028. Today, I want to look at three of the top AI stocks to snatch up in late September.

This company is using AI and machine learning to propel its business

Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based subscription software for supply chain operations around the world. Shares of this AI stock have fallen marginally in 2021 as of late-morning trading on September 28. The stock has plunged 11% month over month.

The company released its second-quarter 2021 results on August 5. SaaS revenue rose 18% from the prior year to $42.3 million. Kinaxis has developed artificial intelligence and machine learning to underpin its revolutionary supply chain and operations planning software. This development can eliminate the need for a team of data scientists, as Kinaxis’s software can automate the entire machine-learning workflow. Moreover, machine learning and always-on analytics constantly improve efficiency.

This AI stock is trading in favourable territory in comparison to its industry peers. Its shares last had an RSI of 34. That puts Kinaxis just outside of technically oversold territory.

Why Shopify is a top player in this exciting space

In November 2019, I’d discussed why Shopify (TSX:SHOP)(NYSE:SHOP) was the ultimate AI stock. Its shares have climbed 23% in 2021 at the time of this writing. However, this stock is also down 11% from the previous month.

Shopify unveiled its second-quarter 2021 results on July 28. It delivered revenue growth of 57% to $1.11 billion. Meanwhile, gross profit jumped 66% to $620 million. Like Kinaxis, Shopify is another company that is leveraging machine learning to bolster its offering to customers. The growth of Shopify Capital owes a great deal to its machine learning and AI development. It uses these resources to personalize offers that go far beyond the turnkey approach that is seen in the broader financial industry. Beyond that, Shopify uses AI to deliver superior advertising and marketing to its merchants, personalization at scale, and many other benefits.

The company achieved profitability over the past year. Shopify and its peers in the e-commerce sector received a huge boost in the wake of the COVID-19 pandemic. This remains one of the best AI stocks to own for the long haul. Its shares last had an RSI of 31, putting it just outside oversold levels.

One more AI stock to snatch up today

Fobi AI (TSXV:FOBI) is a smaller company that is engaged in the development of automated artificial intelligence marketing platforms for brick-and-mortar retailers. Shares of this AI stock have climbed 58% in the year-to-date period. The stock is up over 700% in the year-over-year period.

This AI stock boasts a fantastic balance sheet. However, it is still a small player in comparison to our previous two examples. This is an AI stock worth monitoring, as it aims to grow its revenue in the quarters to come.

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 stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends KINAXIS INC and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

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