3 Canadian AI Stocks That Are Minting Coin in 2024

AI stocks like Kinaxis Inc (TSX:KXS) are outperforming the TSX.

| More on:
Group of people network together with connected devices

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Did you know that there are many Canadian companies claiming a piece of the generative artificial intelligence (AI) pie?

From supply chains and logistics to e-commerce and textual analysis, Canadian companies are moving the needle in AI research. Not all Canadian AI companies are household names, but many of them are growing rapidly. Potentially, one of them could someday join the “Magnificent Seven” club of trillion-dollar tech stocks.

In this article, I will explore three Canadian AI companies that are changing the game in 2024.

Kinaxis

Kinaxis (TSX:KXS) is an industry-leading supply chain analytics company. It uses generative AI to deliver rich supply chain insights. With Kinaxis RapidResponse, you can quickly collect key supply chain trends and use them to forecast (for example) how much inventory will be needed on what date. RapidResponse’s software can figure this kind of thing out using AI alone. In the past, you’d have had to hire a statistician to crunch all of this data for you.

Created with Highcharts 11.4.3Kinaxis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Kinaxis’s RapidResponse platform has seen increased adoption in recent years due to its use of generative AI. In the most recent 12-month period, the company’s revenue grew 20.5%, and its diluted earnings per share (EPS) grew 72%. Overall, it was an impressive showing.

OpenText

OpenText (TSX:OTEX) is a company that specializes in text analysis and content management. Its AI cloud has a number of powerful AI features:

  • Text analytics
  • Predictive insights
  • Text mining (extracting usable info from text)
  • Video classification analysis
  • Automated business reports (e.g., updates on sales and earnings for a given quarter)
  • Natural language chatbots
  • And more

This is a pretty comprehensive set of enterprise AI features, and OTEX’s AI Cloud lets users access it all with one subscription. It is definitely promising, and OTEX’s revenue growth recently exploded to 51% due to the increased adoption of the AI cloud. I’d say there’s some risk of these products losing clients once the “wow” factor of AI wears off, but trading at 7.5 times earnings, OTEX isn’t exactly priced for continued growth.

Shopify

Shopify (TSX:SHOP) is a Canadian e-commerce company. It provides a platform for self-hosted online stores, it includes both a website builder and a payment platform. The company also recently branched out into point of sale (POS) terminals, which are similar to e-commerce payment platforms only for use in physical stores. If you’ve ever worked food service or retail: they’re the touch-screen applications you use to take orders and keep track of what’s in the cash register.

Shopify’s main use of AI is much easier to understand than Shopify’s or Kinaxis’s: it uses large language models (LLMs) to help vendors write product descriptions. Basically, if you own a business, you can write a few simple bullet points about one of its products in Shopify Sidekick and have your purely factual description turned into a compelling product description that converts visitors into customers. Shopify is also using AI to help vendors build customer service chatbots. It’s a pretty exciting set of AI features, and it bodes well for Shopify’s future.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Nvidia wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 has positions in and recommends Shopify. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

The letters AI glowing on a circuit board processor.
Tech Stocks

How I’d Allocate $10,000 to AI Stocks in Today’s Market

Shopify (TSX:SHOP) is one of Canada's most compelling AI stocks.

Read more »

Canada day banner background design of flag
Tech Stocks

The Top Canadian Stock to Buy With $5,000 in 2025

There are few Canadian stocks out there that offer the outlook of this tech stock, bound for more growth.

Read more »

ways to boost income
Tech Stocks

How I’d Invest $11,500 in Canadian Fintech Stocks to Revolutionize My Finances

Propel Holdings stock's recent dip could be a trading opportunity for long-term financial gains. Here's why the fintech stock is…

Read more »

Start line on the highway
Tech Stocks

Where I’d Invest $5,000 in Growth Stocks With Long-Term Potential Through 2030

DO you have $5,000 to invest to grow your wealth over the long term? These growth stocks could deliver strong…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Buy the Dip on the Return of Recession Stocks?

If a recession comes back, there are some stocks that could fair well afterwards. And this is one of the…

Read more »

data center server racks glow with light
Tech Stocks

April Opportunity: Where I’d Invest $7,000 in These 3 Tech Stocks Right Now

These tech stocks have solid growth potential and are trading at discounted valuation, providing a solid buying opportunity in April.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

If I Could Only Buy and Hold a Single U.S. Stock, This Would Be It

You don’t need 40 different stocks to build wealth. A few good ones can boost your portfolio, and this U.S.…

Read more »

cloud computing
Tech Stocks

2 Top Canadian Information Technology Stocks to Buy Right Now

These two Canadian information technology stocks are bargains amid the downturn in the broader market for long-term investors.

Read more »