My Top AI Stock Picks for the Next 5 Years

These two AI stocks aren’t just fads that will come and go, but long-term holds that have a lot more to come for its investors.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 15, 2023 3:45 pm EST

Artificial intelligence (AI) is no longer a fad, and neither are AI stocks. That being said, there are some AI stocks that are bound to do better than others. Not just in the next year, but in the next five years while the market continues to equalize after the introduction of these AI stocks.

Today, I’m going to go over my top AI stock picks right now. These are companies that have been involved in AI for some time, and so this isn’t a fad to them. What’s more, it has been and remains part of their core business. So, let’s get right into them.

OpenText

OpenText (TSX: OTEX) is one of my top picks among AI stocks right now. The technology stock has gone through a lot of changes over the last decade but has remained focused on creating a streamlined, secure approach to supporting its clients.

OpenText stock went through a massive period of expansion through acquisitions, including Micro Focus, over the last year, just as an example. It then went into a period of partnerships, creating these partnerships with companies ranging from Ulta Beauty to Alphabet.

But now, the company wants to support all these partnerships and acquisitions by making it as easy as possible to use the company’s products and services. This is supported by its many AI offerings, which were released during OpenText World this year.

The several “vectors” span everything from a chatbot to creating documents to identifying issues with shipments and responding in real time. So, not only is the company getting into AI, but it’s also using it to expand and support an already strong business. This is why it’s certainly one of the AI stocks I would consider as it continues to expand in the next five years.

Kinaxis

Another of the AI stocks that’s already been using the product for years is Kinaxis (TSX: KXS). This company proved to be essential in the last few years, as it’s a supply-chain management company, which uses AI as well.

Kinaxis stock uses AI through its Rapid Response program. This program allows the company to identify and respond to any issues with shipments. Whether it’s a temperature drop or a delay at a border, the company can then reroute or send help to wherever the issue is.

This has allowed Kinaxis stock to remain strong for its enterprise-level clients even in the face of supply-chain disruptions. In fact, it continues to surge past earnings estimates, pushing shares up 15% in the last month alone.

In fact, analysts now predict that Kinaxis stock is going to have a great year. Shares are still far lower than 52-week highs, and there is a lot of room to grow back to a share price in the $200 range. It’s one of the AI stocks that has a clear path to profitability by doing what it’s always done. And that’s support its clients through the use of AI. So, among the AI stocks out there, certainly consider OpenText stock and Kinaxis stock on the TSX today.