3 Top Artificial Intelligence Stocks to Buy in March

AI stocks are the future, but what about the companies already using it for their own advantage? Here are three you might be surprised to hear about.

| More on:
Businessman holding AI cloud

Image source: Getty Images

There’s been so much discussion about artificial intelligence (AI) stocks in the last year. This is certainly going to be a growing area of the market over the next decade and beyond. In fact, it’s already achieved so much.

The AI market is now expected to hit US$1.6 trillion by 2030. This would represent a compound annual growth rate (CAGR) of 33.7% from 2023 levels. The focus will be on stronger AI, transparency, explanation, and of course ethical considerations.

But there are already companies using AI for their own benefit. Rather than trying to design systems we can use here at home, they’re designing systems to provide a better product. So today, we’re going to look at three Canadian AI stocks doing just that.

Kinaxis

Kinaxis (TSX:KXS) is a cloud-based supply-chain management company that’s been using AI for quite some time. The company’s RapidResponse uses it for tasks such as demand forecasting, inventory optimization, and transportation planning as well. Shares of Kinaxis stock surged in the last few years, but have come down significantly since all-time highs.

Which is why now might be a good time to consider the stock. Kinaxis stock may have a higher valuation right now, but long-term investors should get their money’s worth. The AI stock has seen a high percentage of subscription-based revenue, which provides strong recurring revenue to investors. It’s now a leader in supply-chain management, with its AI -powered software ahead of the market.

True, there are other companies providing competition. But here in Canada, Kinaxis stock looks like the best when it comes to supply-chain management. Shares are now up 75% in the last five years alone. So long-term investors certainly have reason to consider the stock while it’s down.

OpenText

Another company that’s already been using AI in the last few years is OpenText (TSX:OTEX). However, OpenText stock upped its game in this category during its last OpenText World event. The company announced it would be expanding AI to several new sectors, ranging from engineering to chat spaces.

What’s more, the enterprise information management company has been using AI for years. This has included for content analytics, security, and customer experience. This has likely helped shares of the AI stock rise 82% in the last decade.

With more AI being integrated, including the engineering software already up and running, this should optimize the company’s performance even further. It now offers a diversified portfolio of clients, recurring revenue through subscriptions, and the benefit of being an established software company. So this is yet another AI stock to consider as well.

Descartes

Finally, Descartes Systems Group (TSX:DSG) is the last of the AI stocks I would consider among Canadian companies these days. The logistics software company offers optimization for tasks such as route optimization, freight matching, and customs compliance. Basically, it simply makes your life easier as a company.

Shares of DSG stock have also grown substantially over the years, and you can’t help wondering how AI has helped optimize the company for growth. Shares have increased a whopping 159% in the past five years alone. Insanely high among the other AI stocks on this list.

Yet there is certainly more to come for this company. The stock continues to offer high profit margins among its peers, with recurring revenue from subscriptions. It also holds a strong track record of consistent revenue and earnings growth. All together, DSG stock has been a fan favourite among AI stocks. And that doesn’t look like it will change any time soon.

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 Amy Legate-Wolfe has positions in Kinaxis. The Motley Fool recommends Descartes Systems Group and Kinaxis. The Motley Fool has a disclosure policy.

More on Tech Stocks

falling red arrow and lifting
Tech Stocks

Is Shopify a Buy, Sell, or Hold?

Shopify (TSX:SHOP) stock has been pulling back of late, opening up a window for dip buyers.

Read more »

Different industries to invest in
Tech Stocks

2 No-Brainer Growth Stocks to Buy Now With $2,000 and Hold Long Term

These growth stocks have already proven their worth this year, but are solid investments for long-term holders as well.

Read more »

woman data analyze
Tech Stocks

1 Stock That’s Just as Hot as Nvidia (Without All the Hype)

Nvidia (NASDAQ:NVDA) stock has surged in share price, but so has this stock, with a far lower share price to…

Read more »

Index funds
Tech Stocks

Constellation Software Stock: Buy, Sell, or Hold?

Unveiling the Code: Should you Buy, Hold, or Sell Constellation Software (TSX:CSU) stock at current levels?

Read more »

A plant grows from coins.
Tech Stocks

Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now

Growth investors should have these two tech stocks high up on their watch lists.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Tech Stocks

Well Health Stock Is Down 58% From its Highs – Time to Buy?

Well Health stock has been hit, but the company remains on a path of record-breaking revenues as it approaches positive…

Read more »

Business man on stock market financial trade indicator background.
Tech Stocks

TFSA: The Most Expensive Stock in Canada Is a Top Buy Today

CSU stock (TSX:CSU) may be the priciest stock on the TSX today, but there is a very good reason for…

Read more »

TFSA and coins
Dividend Stocks

TFSA: Invest $15,000 in CSU Stock and Get $4,694 in Passive Income

CSU stock (TSX:CSU) has surged in the last year, yet even if growth slows by half, you could create immense…

Read more »