AI Isn’t Going Away: 2 Stocks to Get in Early

AI is expected to be as impactful and transformative a force as the internet has been, and its perceived “permanence” is a strong reason to invest in it.

| More on:
Businessman holding AI cloud

Image source: Getty Images

There are many inventions and innovations that have practically changed the course of human history and development. The use of fire, the invention of the wheel, the steam engine, and computers have all contributed to the reshaping of human history. The most recent example of this would be the internet, which changed everything from the corporate world and our social lives.

We haven’t yet realized the full potential of artificial intelligence (AI) yet and how it may impact our future, but it may not be a stretch to say that it might have just as enormous an impact on the world (if not more) as the internet had.

Suffice it to say that the internet is not going away, and early adopters might develop an edge. It’s just as true for investors as it is for professionals. Two tech stocks in Canada stand out from the rest when it comes to AI.

A learning platform

Docebo (TSX:DCBO) is a learning suite developed for the corporate segment. It allows businesses to create and disseminate training content and monitor the performance of their employees (learners). Docebo’s platform has been used by over 2,000 recognized brands around the globe.

AI has permeated multiple services offered by the platform. This includes its virtual coach that relies upon AI, deep search features that take context into account, personalized suggestions, and more. It’s a learning platform already using AI on several levels, and the overlap may grow significantly over time.

The stock has (so far) seen a major bullish phase and a long-term corrective phase that it’s still going through. It rose by about 667% from its inception to its peak, partly carried by the momentum of the tech sector during COVID.

The correction has also been brutal, and it’s currently trading at a 60% discount. However, the company is promising both from an AI perspective and because of its business model and the organic growth it has achieved.

An information management company

Open Text (TSX:OTEX) is among the tech companies that have faithfully ridden the 2023 growth momentum of the tech sector. The stock has risen by about 34% since the beginning of the year, which is quite close to the 33% of the tech index. So, if the bull market phase of the sector continues, the stock may continue to follow the pattern.

AI and Analytics are among the core parts of OpenText Cloud, which encompass the bulk of information management services the company offers. It’s also powering its Business Intelligence features.

The long-term growth potential of the stock has been relatively modest for a tech stock but quite consistent. It has risen by about 200% in the last decade and is also one of the few tech stocks that offer dividends.

Foolish takeaway

Pure AI companies are relatively rare in Canada, at least in the publicly traded category. However, AI will most likely become an important part of the business model for a wide array of companies, starting with the tech sector. Early adopters like Docebo and Open Text may also reap its benefits in their regular operations.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Docebo. The Motley Fool has a disclosure policy.

More on Tech Stocks

woman retiree on computer
Tech Stocks

2 Top TSX Growth Stocks to Buy Today and Hold for 10 Years

Given their long-term growth prospects and discounted valuations, these two growth stocks could deliver multi-fold returns in the long run.

Read more »

hot air balloon in a blue sky
Dividend Stocks

3 Roaring Stocks to Hold for the Next 20 Years

Sure, there are stocks roaring upwards in the last year, but these three can claim doing it for decades.

Read more »

A chip in a circuit board says "AI"
Tech Stocks

How to Invest in Stock in Canada

Are you looking for growth from our neighbours to the south? This tech stock has it, but how can Canadians…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Better Buy in July: Passive-Income Plays or Growth Stocks?

Will July mark the beginning of an economic recovery? Should you consider investing in passive income or growth stocks ahead…

Read more »

A chip in a circuit board says "AI"
Tech Stocks

This is the Best AI Stock to Buy Right Now

When it comes to AI stocks, Nvidia stock should jump to mind. But don't forget about the absolute dominance of…

Read more »

Choose a path
Tech Stocks

BB Stock’s Dismal Earnings: I’ll Stay Away

BlackBerry Inc (TSX:BB) stock crashed after earnings. Here's why I'm still staying away.

Read more »

sad concerned deep in thought
Tech Stocks

Is the Worst Over for BlackBerry Stock?

BlackBerry stock has been burning investors' money for the last four years. Is the worst over for this stock? Here…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

1 Super Tech Stock (Besides NVIDIA) to Buy Hand Over Fist in 2024

A TSX super tech stock could deliver comparable or far better returns than the AI king across the border.

Read more »