As the world of technology continues to grow at a fast pace, artificial intelligence (AI) and machine learning are becoming increasingly popular. While some recently launched generative AI tools or large language models have grabbed people’s attention, AI is not a new concept and obviously has much wider applications than just generating text or creating images. And this is one of the key reasons why the shares of some Canadian tech firms utilizing the power of AI have rallied so far in 2023.
You can expect most AI-related stocks to outperform the broader market in the coming years, as the use of such advanced solutions is expected to skyrocket in the next decade. In this article, I’ll highlight two of the best Canadian AI stocks you can buy now and hold for years to come to expect healthy returns on investment.
Kinaxis (TSX:KXS) is an Ottawa-based tech company that primarily focuses on providing supply chain planning software and solutions to companies across the world. It currently has a market cap of $5.4 billion, as its stock trades at $189.30 per share with nearly 25% year-to-date gains.
Powered with predictive AI and machine learning techniques, Kinaxis supply chain solutions help its customers make confident decisions with increased efficiency.
In May 2022, Kinaxis, at its annual supply chain Innovators conference, added a new chapter of advanced analytics by introducing its new Planning.AI analytical approach for its already popular Kinaxis RapidResponse platform. The company claims that this technology is capable of automatically detecting and combining “the best analytical approaches to solve even your most complex supply chain problems.” More importantly, this advanced solution doesn’t require users to have prior experience in data science or deep analytics.
In addition, its consistently expanding customer base and geographically diversified revenue streams make Kinaxis an attractive Canadian AI stock to invest in for the long term.
BlackBerry (TSX:BB) is another Canadian tech firm that has been utilizing the power of AI and machine learning for its futuristic mobility solutions for quite some time. It currently has a market cap of $4.3 billion as BB stock trades at $7.34 per share, with more than 66% year-to-date gains. This rally comes as a big relief for BlackBerry’s investors as a macroeconomic factors-driven, tech-sector-wide selloff took its share prices down by nearly 63% in 2022.
Based on its yearly revenue figures, BlackBerry generates most of its revenue from its enterprise cybersecurity segment. Nonetheless, the tech firm has focused on widening its IoT (Internet of Things) segment offerings in recent years, helping this segment’s contribution to its top line significantly improve.
In June 2023, BlackBerry announced the general availability of its IVY platform, an AI and machine learning-based vehicle data platform. Keeping this scalability factor in mind, the Canadian tech company has co-developed this platform in partnership with Amazon Web Services. IVY platform, which primarily allows automakers to deploy innovative third-party applications, could further improve BlackBerry’s IoT segment financial growth trends in the coming years, as the demand for such AI-based solutions is rapidly growing in the automotive industry.