If You Like Nvidia, Then You Will Love These 2 Hot AI Stocks

Are you ready to go beyond just Nvidia (NASDAQ:NVDA) stock? These companies still provide investors with plenty of room to grow.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published July 8, 2024 3:30 pm EDT

It’s no secret that Nvidia (NASDAQ:NVDA) stock has been one of the hottest stocks over the last year or more. Whether you’re interested in semiconductors on the rise or in artificial intelligence (AI), it’s been the one to beat.

However, even after a stock split, the stock has proven to be quite expensive. So, what if there were other top stocks that investors could get in on? Better still, what if they were Canadian stocks?

Here’s why these two Canadian stocks should continue to surge on the TSX today.

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies — Source: Getty Images

Celestica

First up, we have Celestica (TSX:CLS), which has its own semi-connection to semiconductor giant Nvidia. Nvidia, a leading global technology company known for its GPUs (Graphics Processing Units) and AI solutions, has been linked to Celestica, a Canadian multinational electronics manufacturing services company. The connection between NVIDIA and Celestica primarily revolves around the supply chain and manufacturing services.

Celestica provides electronics manufacturing services (EMS) and solutions to Nvidia. This involves the production and assembly of various electronic components and systems that Nvidia designs. The partnership allows Nvidia to focus on research and development while relying on Celestica’s manufacturing proficiency to bring innovative products to market. This collaboration ensures that cutting-edge technology is produced with high precision and reliability.

This has been highly beneficial for Celestica stock. Celestica recently reported its first-quarter 2024 earnings, showing strong financial performance. The company posted earnings per share (EPS) of $0.86, surpassing analyst expectations of $0.72. Revenue for the quarter was $2.21 billion, exceeding the forecast of $2.10 billion. This represents a solid quarter for Celestica, highlighting its effective operational strategies and strong market demand.

So, even though shares are up 285% in the last year, there is still likely far more growth to go.

OpenText stock

Another top AI stock, and one that’s been around for as long as Nvidia stock, is OpenText (TSX:OTEX). The pair have a collaborative relationship centred on leveraging AI and machine learning (ML) technologies.

OpenText integrates Nvidia’s GPUs and AI capabilities into its enterprise information management solutions. This partnership allows OpenText to enhance its AI-powered analytics, improve data processing speeds, and deliver more robust insights to its clients. The use of Nvidia’s advanced GPUs enables OpenText to handle large datasets efficiently and develop more sophisticated AI models for various enterprise applications.

Beyond Nvidia, AI-powered features in OpenText’s products include advanced data classification, sentiment analysis, and predictive analytics. These capabilities help businesses make informed decisions by providing real-time analysis and foresight into trends and potential outcomes.

Additionally, OpenText’s AI solutions improve automation in content management, streamlining workflows and increasing operational efficiency. By utilizing AI, OpenText aims to transform how enterprises manage and derive value from their information assets. However, shares of OpenText stock haven’t performed as well as these others, with shares down 20% in the last year. But that could mean you’re getting in on a great deal before this stock rises once more.