2 Canadian Tech Stocks With Serious AI Savvy

Shopify (TSX:SHOP) and another high-tech stock are great buys for their long-term AI prospects.

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Canada’s tech scene is full of intriguing innovators, some of which stand to benefit significantly from the generative artificial intelligence (AI) revolution. Though the U.S. market may receive a vast majority of the attention when it comes to AI upside, I certainly wouldn’t sleep on the following Canadian companies, many of which have the AI savvy to punch their ticket to a top spot in the AI race!

In this piece, we’ll check in with two names in learning management system (LMS) software maker Docebo (TSX:DCBO) and digital retail heavyweight Shopify (TSX:SHOP) to see how they stack up going into a heated June for the broader markets. Though the TSX Index and S&P 500 are pretty close to their highs, the following AI stocks are in a bit of a springtime rut. Such a dip, I believe, stands out as an opportunity than a reason to step aside.

Docebo

Docebo is a little-known Canadian mid-cap tech stock that can punch well above its weight when it comes to generative AI. From AI-powered personalization and tagging to the LearnChain technology, it’s clear Docebo punched its ticket to the AI race well before many of us knew about the AI chatbot that started it all: ChatGPT.

Indeed, AI has markedly enriched the Docebo employee training platform, but there’s still more ground to gain as the firm looks to embed even more AI features. Looking ahead, Docebo could get more active on the M&A front. With so many impressive AI startups in Canada and the U.S., Docebo has ample opportunity and financial firepower to bolster its capabilities.

During the pandemic lockdown, when many people were forced to work from home, Docebo stock found itself going parabolic before peaking just shy of $90 per share. Such a booming tailwind may never happen again. That said, I think it’s a mistake to discount Docebo’s AI talents, especially while the stock’s down more than 33% from its high.

My take? If you’ve got the risk tolerance, DCBO stock looks like the mid-cap to buy on weakness.

Shopify

Shopify is an e-commerce sensation that may just catch a second wind of growth as it taps into the powers of generative AI via Shopify Magic and Smart Sidekick.

Undoubtedly, AI investments do not come cheap, and the real, meaningful financial benefits may flow gradually over the course of many years. Many shortsighted investors are starting to realize this. For savvy investors looking to play the long game, though, Shopify remains one of the best tech stocks for growth investors looking to place a big domestic bet.

The company is fresh off a rough round of quarterly earnings. While there’s no telling when investors will get excited about the technologies brewing at the Ottawa-based tech titan, I think it makes sense to be a net buyer while shares are in the $80 range before any prior bets have a chance to power another wave of growth.

Apart from value-adding AI add-ons, Shopify also stands to benefit from marketing spend, say analysts at Goldman Sachs, which recently upgraded SHOP stock to buy from neutral. I couldn’t agree more. Shopify stock is so unloved right here that many may be guilty of overlooking some fairly timely catalysts that are just around the horizon.

In short, Shopify is an AI- and analytics-savvy tech titan that should be bought for the long haul whenever investors begin to sour on the name.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Docebo and Goldman Sachs Group. The Motley Fool has a disclosure policy.

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