Artificial intelligence (AI) used to be the stuff of science fiction, but many considered it to be the future for a very long time. Well, the future is now, and AI will definitely play a major part in it. While the flip side is an arguably irrational fear that AI will replace jobs, several AI stocks in Canada show how helpful embracing the technology can be.
Several Canadian companies in the tech sector are using AI to enhance their offerings. Instead of replacing jobs to do so, they are using AI to intelligently collect data, identify issues, and provide improved solutions to their customers.
With increased efficiency and improved products, these companies can set themselves up for more profitable futures. For investors, the AI revolution can mean better shareholder value and long-term wealth growth. If you are bullish on AI, here are two TSX tech stocks you can consider adding to your self-directed investment portfolio.
Kinaxis
Kinaxis (TSX:KXS) is a $5.15 billion market capitalization supply chain management and sales and operation planning software company. Headquartered in Ottawa, it uses AI to power its Software-as-a-Service (SaaS) platform. It offers high-speed analytics and responses through RapidResponse to enterprise-level companies worldwide to bolster their operations and growth.
Kinaxis has fared better than many other tech stocks in recent quarters. Its recent-most earnings report saw its earnings align with total revenue estimates by analysts. That said, its SaaS revenue beat guidance and prompted management to increase its full-year revenue guidance for fiscal 2023.
As of this writing, Kinaxis stock trades for $182.13 per share, up by 17.76% year to date and almost 43% in the last 12 months. The recent dip in its share prices can let you add its shares to your portfolio for a slight discount from its June 6, 2023, high.
WELL Health Technologies
WELL Health Technologies (TSX:WELL) is a $1.22 billion market capitalization multichannel digital health technology company. Headquartered in Vancouver, it also owns and operates Canada’s largest outpatient health clinics. If you are interested in investing in companies leveraging AI to improve services and products, WELL Health Technologies stock can be a great investment.
The growth stock initially soared when the pandemic set in. The pandemic-induced restrictions caused the telehealth industry to skyrocket, becoming a boon for WELL Health stock. Recently, WELL Health Technologies announced that it is using AI to help healthcare professionals.
Using AI Voice, WELL Health is significantly reducing the administrative burden of patient encounters. Doctor feedback noted that it has helped reduce chart note-taking by almost a third while enhancing patient information security.
As of this writing, WELL Health stock trades for $5.22 per share, up by 85.77% year to date. That said, its share prices have come down from $5.94 per share in May 2023, providing you an opportunity to invest in its shares at a discount.
Foolish takeaway
The global AI market is forecasted to grow substantially before this decade ends, with estimates of AI contributing $15.7 trillion to the global economy by 2030. As AI continues to dominate the tech sector and grow in the coming years, investing in companies that are well positioned to capitalize on it can be an excellent way to put your money to work in the stock market.
Kinaxis and WELL Health Technologies are two high-quality tech stocks that can be terrific investments to buy and hold to leverage the AI revolution. Granted, these tech stocks do not come without risks. Still, investors with well-balanced portfolios can consider allocating a portion of their investment capital to these growth stocks.
