The AI (Artificial Intelligence) boom started off with a bang this year, as ChatGPT became the top topic to chat about at the water cooler. Indeed, we’ve lived through so many tech trends over the past few years that it’s easy to dismiss the rise of AI as some sort of bubble that we’ll all forget about a year or two down the road.
Cryptocurrencies, Web3, NFTs (non-fungible tokens), blockchain, the metaverse, and remote work have garnered a lot of hype in recent years. They’re all incredible technologies. But there’s a good chance that the hype may be just a tad overblown.
Further, it may be tougher to monetize the technologies, at least in the nearer term. With rates rising, there’s more emphasis on timelier tech trends. Those that are too far ahead of their time may be worth forgetting about.
The tech sell-off of 2022 was a brutal reminder that you have to be careful about how much you pay for growth. Indeed, it’s been a while since the 2000 dot-com bust. Now that investors are focused on real profits again, I do think it’s a wise idea to temper expectations when it comes to the promising growth stocks riding on those tech trends.
AI: It’s more than just another short-lived tech trend
AI is more than just another tech trend to group with crypto or blockchain, though. It’s a more easily-monetizable technology with farer-reaching applications. Further, ChatGPT is very much one of the most impressive pieces of software we’ve seen in decades.
Can the same be said for crypto?
Probably not. I fail to see what was so exciting or game-changing about crypto. Sure, it was a novel way of paying for something. But beyond that, I didn’t see it as a disruptive technology that would change the world forever.
With AI chatbots continuing to hog the headlines, investors should be excited about the potential of generative AI. However, they still must exercise discipline in how they pay to get into the growth to be had from AI. By conducting a careful valuation of a firm, investors can mitigate risks. In this piece, we’ll check in with one Canadian AI stock that may be positioned for growth.
Docebo
Docebo (TSX: DCBO) has been harnessing the power of AI for years now, well before ChatGPT took the planet by storm.
The company behind learning management system (LMS) software boomed during the work-from-home (WFH) revolution during pandemic lockdowns. Like most other WFH stocks, shares eventually tumbled back to Earth. These days, I think the stock has fallen well below where it should be, given its long-term growth potential.
The stock has been steadily rising higher again, now up around 57% from its 2022 lows. The $1.7 billion productivity software company is continuing to strengthen its AI capabilities.
As more prospective firms discover what they’ve been missing out on, I do think Docebo is one of the few tech stocks that can live to see new highs again. The stock is off around 52% from the top. Though it could take years to hit new highs, I do think the firm’s AI capabilities will help it power higher from here.
AI is a big deal, and Docebo is one Canadian firm that’s making good use of it!
