The development of artificial intelligence (AI) has fascinated investors and casual readers alike over the past decade. Business leaders like Elon Musk and Mark Zuckerberg have periodically chimed in, sometimes to issue a warning about AI progress and in other cases to celebrate its potential. The success of ChatGPT, an AI chatbot developed by OpenAI, has sparked further debate over how this technology could impact academia, creatives, and more. It was launched as a prototype on November 30, 2022.
ChatGPT quickly sparked an avalanche of interest for its incredibly advanced and articulate answers with an amazingly deep knowledge pool. The success of ChatGPT has led to an explosion in OpenAI’s market value. Predictably, top companies like Alphabet and META Platforms have moved to develop alternatives. Today, I want to zero in on two stocks that are worth jumping on early. First, I want to look at an established TSX stock that offers exposure to the AI space.
Here’s a dependable TSX stock that offers expertise in the artificial intelligence (AI) space
CGI (TSX:GIB.A) is a Montreal-based company that provides information technology (IT) business process services in Canada, the United States, Europe, and in other parts of the world. Shares of this tech stock have climbed 22% year over year as of close on March 13. The stock has jumped 6.4% so far in 2023.
On its website, CGI stated that it is a trusted expert in the AI space. The company aims to help clients “demystify and deliver responsible AI” utilizing “end-to-end capabilities in data science and machine learning with deep domain knowledge and technology engineering skills to generate new insights, experiences, and business models powered by AI.”
In the first quarter of fiscal 2023, CGI delivered revenue growth of 11% year over year to $3.45 billion. Meanwhile, it reported a backlog of $25.0 billion which was 1.9 times annual revenue. Shares of CGI possess a very solid price-to-earnings (P/E) ratio of 20.
Two AI stocks that could be heavy hitters in the future
Canadian investors who want to get in early on young AI stocks may want to consider these equities.
VIQ Solutions (TSX:VQS) is a Mississauga-based company that operates as a technology and service platform provider for digital evidence capture, retrieval, and content management in Canada and around the world. Shares of this micro-cap stock have plunged 81% year over year. However, it has jumped 14% in the year-to-date period.
Investors can expect to see this company’s final batch of fiscal 2022 earnings later this month. In the third quarter of 2022, VIQ Solutions achieved revenue growth of 66% to $11.8 million and gross profit rose to $5.6 million — up from $3.6 million in the prior year. This AI stock is on track for strong revenue growth and is trading in favourable value territory compared to its industry peers.
Fobi AI (TSXV:FOBI) is listed on the TSX Venture Exchange. This Vancouver-based data intelligence company operates around the world. Its shares have surged 50% so far in 2023.
The company unveiled its first-quarter fiscal 2023 earnings on November 28, 2022. Fobi AI boasts a strong balance sheet, but its fundamentals are questionable. Readers should be aware of the significant risks before taking the plunge with this stock in the middle of March.