It’s all about growth stocks these days, with the tech-heavy Nasdaq 100 leading the broader markets higher. Indeed, even the TSX Index has been flirting with new highs lately. Only time will tell if the TSX is ready for its big breakout moment. Regardless, I think young investors should be getting more skin in the game of the growth trade. And the good news is you don’t need to swap your loonies for greenbacks at today’s unappealing rates.
In this piece, we’ll check out two homegrown growth stocks that can unlock the power of generative artificial intelligence (AI) to power higher over the next three to five years. Without further ado, consider shares of Shopify (TSX:SHOP) and Kinaxis (TSX:KXS), two intriguing high-tech plays that look to have a pretty reasonable price of admission at the time of writing.
Shopify
If you missed the glorious past-year rally in Shopify shares, don’t fret. The recent correction in the name seems to be giving newcomers a great entry point. The $136.8 billion e-commerce juggernaut is one of Canada’s best tech innovators. And moving into mid-2024, my guess is that it’ll start getting more aggressive when it comes to generative artificial intelligence (AI) and even the metaverse.
Undoubtedly, digital storefronts stand to benefit profoundly from the rise of the metaverse (or whatever we’ll end up calling in once virtual and augmented reality become the new normal medium for many consumers).
In fact, one could argue that the metaverse has landed already, with various firms allowing consumers to “try” out goods from the comfort of their own homes. Whether we’re talking about trying on new articles of clothing or cosmetics, I think that e-commerce retailers stand to gain even more of an upper hand over their physical counterparts in the age of virtual reality.
As Shopify looks to generative AI and augmented reality to help merchants allow prospective customers to test out their goods digitally, I believe sales could trend higher from here. Perhaps much higher as the nascent technologies nudge customers to follow through with their purchases.
Either way, Shopify looks to be on the cusp of yet another big growth trend. And with that, I wouldn’t hesitate to nibble at around $106 per share. Yes, they’re not dirt cheap. But at the same time, you’ve got to pay up for impressive disruptive innovators. Of all the Canadian tech titans, Shopify is arguably the best of the batch — perhaps by a landslide!
Kinaxis
Kinaxis is another impressive Canadian innovator to put atop your watchlist going into April 2024. The stock has been a turbulent performer since it peaked back in 2020.
Undoubtedly, the early COVID-19 lockdowns and their impact on supply chains around the world were catalysts for Kinaxis, a supply-chain management software developer. Now that supply chains are getting back to full speed (or even more optimal than before the pandemic), Kinaxis’s offering may not be as in demand.
That said, as AI technologies take off, look for Kinaxis to regain some of its edge. The $4.3 billion mid-cap tech firm stands out as more of a hidden gem these days. With AI thrown into the equation, the stock could be headed higher over the next three years.
