Profit From the Rise of AI: 5 Stocks to Buy and Hold for the Long Term

Investors can pick from five stocks that should benefit from the rise of AI and deliver healthy long-term returns.

Businessman holding AI cloud

Image source: Getty Images

The artificial intelligence (AI) industry is snowballing. This popular technology can potentially change the future. Many people expect to profit from the rise of AI. Five Canadian companies that use or adopt AI as business functions are lucrative options for long-term investors.

Global food security

Nutrien (TSX:NTR) is a leading producer and distributor of potash, nitrogen, and phosphate products. It caters to agricultural, industrial, and feed customers. Management said Nutrien is in the fourth year of its multi-year Next Generation Potash Transformation.

The $38.8 billion Canadian fertilizer company developed an AI-powered technology to help ensure the production of a vital nutrient for the world’s population. Nutrien trades at a discount (-19.6% year to date) but should recover lost ground with the help of technology and digital programs. At $78.21 per share, the agri-stock pays a 3.64% dividend.

Digital supply chain

Kinaxis (TSX:KXS) delivers unparalleled supply chain agility and resilience to supply chains across the globe. The $5.4 billion company combines human and machine intelligence to help enterprises in their integrated business planning and to better control the digital supply chain.   

Its cloud-based supply chain management solution, RapidResponse, is the only platform capable of powering true concurrent planning. Management said the digital transformation of supply chain planning is a top initiative for growing companies. The tech stock trades at $189.30 and is flying high year to date (+24.6%).

E-learning champion

Docebo (TSX:DCBO) is one of the first organizations in the world to introduce AI into the e-learning market. Management believes AI can transform corporate e-learning into a competitive advantage for enterprises.

The $1.7 billion company continues to enhance its existing AI capabilities and add new capabilities to its platform. It recently acquired Edugo.AI, a generative AI-based learning technology that uses advanced large language models (LLM) and algorithms.

Docebo posted a net income of US$7 million in 2022 after three consecutive years of losses and despite macroeconomic headwinds. Market analysts recommend a strong buy rating. They forecast the current stock price of $52.44 (+17.2% year to date) to appreciate by 31.8% in one year.  

Leveraging AI in Healthcare

WELL Health Technologies (TSX:WELL) is one of the TSX’s top growth stocks in 2023. At $4.75 per share, current investors enjoy a 67.3% year-to-date gain. Based on market analysts’ price forecasts, the upsurge is not yet over. Their 12-month average price target is $8.20 (+72.6%).

The $1.1 billion digital healthcare company leverages best-in-class technology to empower healthcare practitioners and their patients. Its new program will launch several AI-based products and services. WELL AI Voice, the first transformational product, leverages generative AI to reduce administrative burden and save doctors up to 30% of practicing time.

Advancing a new energy system

Computer Modelling Group (TSX:CMG) provides advanced reservoir modelling capabilities to the energy industry. Its cutting-edge technologies support critical field development decisions for upstream planning and energy transition strategies.

The $537.3 million company leverages AI-based data analytics to improve efficiency, cut costs, and reduce risks of industry operators. Management said the AI-based analytics reduce data-intensive input and quickly estimate the upside value of undeveloped drilling locations using a physics-based approach.

CMG is a dividend payer, a rarity in the tech sector. At $6.66 per share (+15.9% year to date), the dividend offer is 3.13%.

Top buy

Nutrien is the only underperforming stock among the five names. However, it’s the top buy for its role in transforming agriculture and strengthening global food security.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Docebo, Kinaxis, and Nutrien. The Motley Fool has a disclosure policy.

More on Tech Stocks

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »

Wireless technology
Tech Stocks

Predictions for the Top Canadian Tech Stocks in June 2024

Whether it's the growth of artificial intelligence or e-commerce, these three tech stocks offer massive growth in June and beyond.

Read more »

Golden crown on a red velvet background
Dividend Stocks

These 5 Stocks Have Unstoppable Dividend Growth

These five stocks can form a diversified stock portfolio of dividend aristocrats from the TSX.

Read more »

Online shopping
Tech Stocks

Up 42% from 52-Week Lows, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock looks like one of Canada's best growth stocks. And right now, it looks like it's on sale,…

Read more »