2 AI Stocks to Kick Off 2024!

Tech stocks like OpenText Corp (TSX:OTEX) are riding the AI trend.

| More on:
Businessman holding AI cloud

Image source: Getty Images

Artificial intelligence (AI) stocks are the biggest thing in the markets in 2024. Between NVIDIA’s massive rally in the stock market and OpenAI’s success with ChatGPT, there has been a lot to keep up with. Interestingly enough, that fact has not caused interest in all AI stocks to rise. Rather, the spike in interest (and buying) has mainly affected a small handful of “AI winner stocks.” As a result, you can find stocks that are growing just as rapidly as the likes of NVIDIA and Microsoft but with far better buying prices. In this article, I will explore two such stocks that look set to have a great year in 2024.


OpenText (TSX:OTEX) is an underrated Canadian AI stock that is nowhere near as expensive as the big players in AI. At today’s prices, the stock trades at just 10.05 times earnings and 2.7 times book value. For a tech stock, that’s a rock-bottom valuation.

So, what does OpenText do?

It’s primarily in the information management business. It sells enterprise software products that have the following features:

  • Content management
  • Data analysis
  • Text editing
  • Text analytics

It’s in text analytics that OpenText is using AI. You may have heard about “large language models” and how they can create essays that meet, or even surpass, human standards. OpenText has a lot of that tech under the hood in its products. For example, Cloud Editions allows users to create content and have AI fill in sentences for them, so that they can write documents more quickly. That’s just one among many great AI use cases that OpenText’s users enjoy in Cloud Editions and other products.

OTEX stock has had a great run over the years. Its stock has risen 418% in the markets; today, it has a dividend with a 2.45% yield. Also, the dividend has been raised 25 consecutive years, which makes OTEX a true Dividend King.


Adobe (NASDAQ:ADBE) is easily one of the most underrated tech stocks in the world. It sells the Adobe Creative Cloud suite of products:

  • Adobe Photoshop
  • Illustrator (for drawing)
  • Premiere Pro (for video editing)
  • InDesign (for page layouts)
  • Adobe Express (for templates)
  • Adobe Firefly (for AI-based image generation)
  • Adobe Lightroom (for artificial photo lighting)

With Adobe Creative Cloud, you get all of these great applications plus 20 gigabytes of Cloud hosting for just $38 per month plus tax. I personally am a Creative Cloud user and I love the benefits I get with the service. I’ve always been a big fan of Creative Cloud’s core apps, now with Adobe Firefly, I can create AI images on the fly and also have my own images filled in with quick edits as well.

Over the years, ADBE has done a lot of growing. In the last 10 years, it has grown its revenue by 17%, its net income by 34%, and its earnings per share by 36% per year. It’s been a great showing. And, with Adobe only just recently having launched its AI products, there’s potential for even more growth in the future.

Foolish takeaway

What a few years it has been. Ever since ChatGPT launched in November of 2022, AI has taken the world by storm, transforming companies and empowering people to work faster and smarter. Who knows what tomorrow brings? One thing that’s certain is that OpenText and Adobe will be a part of it.

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 Andrew Button has no position in any of the stocks mentioned. The Motley Fool recommends Adobe, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

More on Tech Stocks

Dots over the earth connecting the world
Tech Stocks

Hot Takeaway: Concentration in 1 Stock Can Be Just Fine

Concentration in one stock can be alright under the right circumstances, and far better than buying a bunch of poor-performing…

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Forget TD Stock: 2 Tech Stocks to Buy Instead

As bank stocks continue disappointing investors in 2024, you can consider adding these two top Canadian tech stocks to your…

Read more »

financial freedom sign
Tech Stocks

1 TSX Tech Stock That Has Created Millionaires and Will Continue to Make More

Constellation Software is a TSX stock tech that has delivered game-changing returns to shareholders since its IPO in 2006.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Payfare Can Potentially Provide Explosive Growth

Payfare is a global financial technology company that powers digital banking, instant payment, and loyalty reward solutions for the gig…

Read more »

online shopping
Tech Stocks

1 Hidden Catalyst That Could Ignite Shopify Stock

Here's why Shopify (TSX:SHOP) ought to remain a top growth stock investors continue to focus on for the long haul.

Read more »

Man considering whether to sell or buy
Tech Stocks

WELL Stock: Buy, Sell, or Hold?

WELL stock has a lot of upside as the company is likely to continue to grow, posting positive earnings in…

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Tech Stocks

Finally Going Private: What Should Nuvei Investors Do Now?

Understanding the reasons and factors behind a public company going private can help investors make an educated decision.

Read more »

woman data analyze
Tech Stocks

1 Stock I’d Drop From the “Magnificent 7” and 1 I’d Add

Tesla (NASDAQ:TSLA) stock is part of the Magnificent Seven, but Shopify (TSX:SHOP) is growing faster.

Read more »