The Canadian government increased the contribution limit for the Tax-Free Savings Account (TFSA) in 2023 to $6,500 a year from $6,000 in the previous year. TFSA holders can invest this amount in some quality stocks to get tax-free high returns on their investments in the long term. As the popularity of artificial intelligence (AI) has significantly grown in the last few months, it makes sense for TFSA investors to consider investing in some quality AI-focused growth stocks in 2023.
In this article, I’ll highlight two of the best Canadian AI stocks you can add to your TFSA now to hold for years to come.
My first favourite AI stock in Canada to consider now
AI has primarily gained huge popularity in recent months due to the launch of Microsoft-backed firm OpenAI’s ChatGPT. While ChatGPT utilizes a large language model to generate text in natural language, the application of AI is not limited to just natural language generation. One of the key areas where AI is expected to play a very critical role in the next decade is the automotive industry. And this is exactly where BlackBerry (TSX:BB), my first favourite AI stock to consider now, is trying to advance.
BlackBerry is a Canadian enterprise software company with a market cap of $3 billion, as its stock trades at $5.07 per share with about 14.3% year-to-date gains. It makes most of its revenue by selling its cybersecurity software solutions to businesses. However, I find the recent developments in its IoT (Internet of Things) business segment more interesting.
While BB’s QNX operating system is already being used in nearly 215 million cars globally, its upcoming AI and machine learning-based vehicle data platform IVY is likely to expand its footprints in the automotive technology space further. BlackBerry plans to make the IVY platform generally available around mid-2023. The platform has the potential to attract huge demand from large automakers and help BB accelerate its financial growth trends significantly and take this AI stock higher.
My second favourite AI stock to buy now
Besides the automotive industry, AI solutions are also likely to play a big role in the cybersecurity segment in the future. As more businesses than ever have built their online presence in recent years, the demand for innovative cybersecurity solutions for businesses is likely to skyrocket in the next decade. Magnet Forensics’s (TSX:MAGT) offerings, like Magnet AXIOM and Magnet.AI, could be great examples of such innovative software solutions. The stock of this $546 billion tech company currently hovers at $44.12 per share with 18.7% year-to-date gains.
Magnet.AI, which is a part of Magnet AXIOM software, utilizes machine learning capabilities to very efficiently investigate massive amounts of digital content. Moreover, its software solutions are capable of analyzing data from various sources to collect and manage evidence of potential vulnerabilities.
While Magnet Forensics doesn’t have several decades of experience, its innovative AI and machine learning-based cybersecurity solutions are fast gaining popularity across the globe. This is why you can expect its financials to grow at an exponential rate in the long term and this Canadian AI stock to soar.
