AI Revolution: Canadian Investors Flock to Stocks Driving Innovation

AI stocks like Docebo should be on your watch list.

| More on:
Wireless technology

Image source: Getty Images

Recent breakthroughs in artificial intelligence have the capacity to reshape many industries. Experts are already talking about how AI models can change the way we deliver healthcare, personalize education, and manage finances on a large scale. 

Canadian tech stocks are riding the wave, too. Here are the top three AI-adjacent stocks that should be on your radar if you’re trying to bet on innovation in this space. 

WELL Health

Vancouver-based healthtech company WELL Health Technologies (TSX:WELL) has delivered tremendous growth by acquiring small and mid-sized startups in the healthcare software space. Acquisitions in virtual healthcare and online pharmacy delivery helped them stay ahead of the curve during the pandemic. 

Now, the team is working on AI applications for healthcare services. The company has already rolled out WELL AI Voice, a transcription and voice-assisted data collection service that should help doctors manage their patients data more conveniently. 

I believe the company could have more opportunities to either develop or acquire AI-based healthcare apps in the future. This gives them exposure to the emerging revolution. 

WELL Health stock trades at a price-to-sales ratio of 1.3 and is on track to deliver revenue growth of up to 25% this year. Keep an eye on this underrated tech stock.

Docebo

AI’s killer feature is personalization and communication. These large language models (LLMs) can sift through a lot of data about a person or subject and concisely explain it in plain language. Which is why industry experts believe generative AI will have plenty of applications in education.

In fact, Khan Academy – a non-profit focused on online education platform – has already rolled out a personalized tutor feature powered by ChatGPT to help students learn. 

I believe enterprise training company Docebo (TSX:DCBO) has a similar opportunity. The company claims to have already integrated generative AI to help its corporate clients create presentations and worker training modules. Its recent acquisitions such as Edugo.AI could propel this initiative further. 

Investors could expect a bump in sales if any of these new AI experiments lead to better outcomes for corporate clients. The company’s client base is over 3500.

Keep an eye on this one if you’re looking for a Canadian AI stock bet. 

Kinaxis

Kinaxis (TSX:KXS) is another company that seems to be uniquely well positioned for the AI revolution. The firm offers supply-chain logistics software. I’m not an expert on this but I believe the software has potential for data analytics and forecasting based on existing supply chain data. That could unlock value for Kinaxis and its customers. 

The Ottawa-based tech company has already rolled out its Planning AI analytics platform to customers. If it gains traction, other AI-based tools could be on the horizon. 

Kinaxis stock trades at roughly 10 times sales, which is in line with other enterprise software firms. It’s not undervalued or cheap. But KXS is certainly worth a closer look if you’re looking for a stable tech stock to bet on. 

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 Vishesh Raisinghani has positions in Well Health Technologies. The Motley Fool recommends Docebo and Kinaxis. The Motley Fool has a disclosure policy.

More on Tech Stocks

Circuit board with a microchips
Tech Stocks

3 Promising AI Stocks That Are Cheaper Than Nvidia

Nvidia is positioned to outpace the broader markets in the future. But these three AI stocks may have higher upside…

Read more »

Young woman sat at laptop by a window
Tech Stocks

Could Docebo Stock Reach $200?

Down 55% from all-time highs, Docebo stock trades at a discount to consensus price target estimates in 2024.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

2 Stocks Under $50 That Could Double Your Money in 5 Years

Growth stocks can help you double your money in the next five years. And you don’t need hundreds of dollars…

Read more »

A bull and bear face off.
Tech Stocks

Bull Market Buys: 1 Top Tech Stock to Own Right Now

Down 40% from all-time highs, Datadog stock trades at a discount to consensus price target estimates in 2024.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

The Smartest TSX Growth Stocks to Buy in July 2024

If you are looking for some smart growth stocks, here are four to look at right now.

Read more »

Man data analyze
Tech Stocks

Is Shopify Stock’s Growth Sustainable?

There's a reason Shopify stock (TSX:SHOP) has been getting analyst upgrades, and investors should be paying attention.

Read more »

Shopping and e-commerce
Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow

Shopify (TSX:SHOP) stock jumped in share price from a stellar upgrade, but more is certainly on the way for the…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

Check Out This Soaring Stock, Up 29% From 52-Week Lows, With More Gains Likely to Come

This top tech stock is now up 29% from lows, but still down 12% in the last year. And it…

Read more »