2 of the Top AI Stocks to Invest $2,000 in Right Now

Canadian investors can win exposure to this burgeoning market with AI stocks like Coveo Solutions Inc. (TSX:CVO) in July 2023.

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The development of artificial intelligence (AI) has inspired a broad range of reactions among investors and regular onlookers alike. For some, the rise of more complex AI presents a threat that could potentially rival the invention of the atomic bomb. Others contend that these fears are alarmist and that AI has only progressed to the point of carrying out rudimentary tasks.

Whatever your thoughts and opinions, what cannot be denied is the enthusiasm for this technology sub-sector in 2023. Today, I want to discuss why investors should get in on this space and why there are two AI stocks on the TSX that can benefit from this gold rush. Let’s jump in.

Why investors should seek exposure to the exciting AI space today

AI covers a broad array of technologies, which include machine learning, natural language processing, context-aware computing, and others. The application of these technologies can impact businesses in security, marketing, finance, law, and countless more. Grand View Research recently valued the global AI market at US$136 billion in 2022. That same report projected that this market would deliver a compound annual growth rate (CAGR) of 37% from 2023 through to 2030.

This under-the-radar AI stock is worth your attention

Coveo Solutions (TSX:CVO) is a Montreal-based company that provides applied AI solutions. Shares of this AI stock have climbed 8.6% month over month as of close on Tuesday, July 18. That has pushed this stock into positive territory so far in 2023. Investors can see more of its recent performance with the interactive price chart below.

This company released its fourth-quarter (Q4) and full-year fiscal 2023 earnings on May 30. In Q4 2023, Coveo Solutions reported SaaS Subscription Revenue growth of 17% to $27.1 million. Meanwhile, total revenue rose 14% to $29.1 million. The company’s net loss in Q4 2023 improved to $7.2 million compared to a net loss of $19.4 million in Q4 fiscal 2022. For the full year, total revenue climbed 30% to $112 million, while SaaS subscription revenue increased 32% to $103 million.

Looking ahead, this company is forecasting total revenue between $127 million and $129 million for the fiscal year in 2024. This AI stock is trading in favourable value territory compared to its industry peers. Revenue is on track for solid growth going forward.

Don’t sleep on Kinaxis as an AI stock in the summer season

Kinaxis (TSX:KXS) is the second AI stock I’d look to snatch up in the second half of July 2023. This Ottawa-based company provides cloud-based subscription software for supply chain operations in Canada, the United States, and around the world. The company has won major global clients like Ford Motor Company, Toyota Motors, and Unilever in recent years. Shares of Kinaxis have climbed 22% in the year-to-date period.

Investors can expect to see Kinaxis’s next batch of earnings sometime in August. In Q1 2023, the company posted revenue growth of 3% to $101 million. Moreover, SaaS revenue increased 28% to $63.1 million. Annual recurring revenue climbed 32% to $285 million. Looking forward, Kinaxis projects total revenue between $425 million and $435 million in fiscal 2023.

This AI stock is trading in solid value territory compared to its top competitors. Better yet, Kinaxis boasts an immaculate balance sheet and is geared up for strong earnings growth in the quarters ahead.

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 recommends Kinaxis. The Motley Fool has a disclosure policy.

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