Investing in the AI Revolution: Stocks Poised to Soar in 2023 and Beyond

Canadian investors can get in on the AI revolution with tech stocks like Shopify Inc. (TSX:SHOP) and others in July 2023.

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The introduction of ChatGPT by OpenAI in late 2022 has seen an explosion in interest in the artificial intelligence (AI) space. Moreover, ChatGPT and the development of variations by OpenAI’s competitors have already reshaped the way some companies and individuals are doing business and tackling their everyday tasks. Of course, an advanced chatbot is expected to be the tip of the iceberg when it comes to the potential of this technology. That said, many experts have rightly pointed out that this space is still in its infancy, and we will likely be confronted with the limits of AI in the years ahead. Regardless, there is a gold rush in this space, and investors must take notice.

Today, I want to target three stocks in the AI space that are well positioned for big growth going forward.

Here’s why Kinaxis is a stock to own during the AI craze

Kinaxis (TSX:KXS) is an Ottawa-based company that provides cloud-based subscription software for supply-chain operations in Canada, the United States, and worldwide. Some of the top companies that Kinaxis has been contracted to help include Ford Motor Company, Toyota Motors, Unilever, and Raytheon Technologies. Shares of this tech stock have jumped 1.6% month over month as of close on June 30. The stock is up 22% so far in 2023.

Market researcher Contrive Datum Insights valued the global supply chain management software market at US$15.8 billion in 2022. The report estimates that this market will reach US$33.9 billion in 2030. That would represent a compound annual growth rate (CAGR) of 12% from 2022 through to the end of the forecast period.

In the first quarter of 2023, Kinaxis posted total revenue growth of 3% to $101 million. Moreover, SaaS revenue increased 28% to $63.1 million. This tech stock is trading in solid value territory compared to its industry peers. Moreover, Kinaxis boasts an immaculate balance sheet.

Don’t sleep on this TSX tech stock in 2023

Docebo (TSX:DCBO) is based in Toronto and operates as a learning management software company that provides AI-powered learning platforms in North America, Europe, and around the world. Shares of this tech stock have increased 12% over the past month. The tech stock is up 13% in the year-to-date period.

This company released its first quarter fiscal 2023 earnings on May 11. Docebo delivered revenue growth of 29% to $41.5 million. Meanwhile, subscription revenue jumped 33% to $38.8 million. It posted an adjusted net income of $3.2 million, or $0.10 per share — up from an adjusted net loss of $1.8 million, or $0.05 per share, in the first quarter of fiscal 2022.

Shares of this tech stock are trading in favourable value territory compared to its top competitors. Docebo is on track for strong earnings growth, and it also possesses a phenomenal balance sheet at the time of this writing.

Why Shopify is still one of the top AI stocks to own right now

Shopify (TSX:SHOP) is another Ottawa-based Canadian tech giant that provides a commerce platform and services in Canada, the United States, and internationally. This tech stock has increased 6.2% month over month as of close on June 30. Its shares have soared 112% in the year-over-year period. Investors can see its recent growth spurt with the interactive price chart below.

This company launched a new shopping assistant that is powered by OpenAI’s ChatGPT. Before this, Shopify had dabbled in this space with the services it offered its merchants. Beyond chatbots, Shopify has utilized machine learning to give its merchants a truly customizable experience to finetune their online retail business.

In the first quarter of fiscal 2023, Shopify delivered total revenue growth of 25% to $1.5 billion. Moreover, monthly recurring revenue climbed 10% to $116 million, and gross profit surged 12% to $717 million. Shopify is still geared up for very strong earnings growth, as it looks to add more international merchants to its stable.

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 Ambrose O'Callaghan has positions in Kinaxis. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Docebo, Kinaxis, and Raytheon Technologies. The Motley Fool has a disclosure policy.

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