Canadian tech stocks took a massive hit with the tech sector meltdown. From being some of the most sought-after names on the stock market, tech stocks became too risky for the liking of most Canadian stock market investors.
With macroeconomic issues weighing on the Canadian economy and equity markets, high-risk assets fell out of favour with investors. That said, things in the industry have started looking better and better.
With the advent of artificial intelligence (AI) and its recent developments, several tech companies are making massive inroads into integrating the new tech to enhance their offerings and improve shareholder value. Today, I will discuss three TSX tech stocks involving AI in their operations, providing opportunities for growth-seeking investors to allocate a portion of their capital.
Ceridian HCM Holdings
Ceridian HCM Holdings (TSX:CDAY) is a more obscure name to kick things off, but that is exactly why it might be a good stock to keep on your radar.
The Minneapolis-based $13.92 billion market capitalization company offers human capital and payroll management solutions, targeting primarily enterprise-level organizations. After its 2012 acquisition of Dayforce, it shifted from legacy systems to becoming a cloud-based HCM provider.
In fiscal 2021, its flagship Dayforce platform brought in 80% of its revenue. A global leader in HCM, Ceridian stock announced the launch of the Dayforce Career Explorer. This is an AI-powered solution that helps enhance retention and engagement. The platform offers employees an intelligent solution to manage their careers and use a data-driven approach to outlining their way forward.
In theory, the solution should benefit employers and employees, driving more growth for the company and enhancing shareholder value. As of this writing, the stock trades for $89.69 per share.
TELUS International
TELUS International (TSX: TIXT) is a US$5.60 billion market capitalization digital customer experience innovator.
The Vancouver-based company designs, builds, and delivers next-generation solutions to clients across several industry verticals, including Communications and Media, Tech and Games, Healthcare, Travel and Hospitality, E-Commerce, and FinTech. Like other tech giants, TELUS International is making inroads into the AI space.
Through its AI Data Solutions product, TIXT stock helps companies test and improve their machine learning models. Boasting a globally diversified community of AI experts, TIXT stock is setting itself up as a major game changer in the AI space, delivering better search results, speech recognition, and smarter products to businesses of all levels.
Its AI-powered operations will likely take the company to greater heights in the coming years. As of this writing, TIXT stock trades for $20.51 per share.
Nuvei
Nuvei (TSX: NVEI) is a $2.51 billion market capitalization alternative payment processing company headquartered in Montreal. It has been one of the forerunners among Canadian tech stocks embracing the AI revolution.
In June 2022, Nuvei launched its ground-breaking, machine-learning solution to boost risk management. Through cutting-edge technology, its pioneering algorithm significantly reduces risks by enhancing protection against fraudulent transactions.
The company provides alternative payment solutions to merchants worldwide, and the demand for its services has soared in the last few years, as global economies become increasingly digital. By integrating its new AI-powered solutions, Nuvei has set itself up for a stronger future.
It recently announced itself as the payment services provider for Radisson Hotel Group, further cementing its position as an AI stock that will drive further growth in the coming years. As of this writing, Nuvei stock trades for $40.01 per share.
Foolish takeaway
The AI revolution is well underway. Granted, many people have general concerns about AI taking over jobs. Still, there are plenty more positives it has to offer than cons. Getting ahead of the game and investing in the right AI stocks can set you up for stellar wealth growth in the coming years. To this end, CDAY stock, TIXT stock, and NVEI stock are worth having on your radar.
