As far as Canadian artificial intelligence (AI) stocks are concerned, there certainly aren’t the number of options available to investors that there are in the U.S. market, for example. However, that’s not to say that there aren’t companies with big AI tailwinds worth considering. Indeed, if AI truly is as big as everyone expects, these companies could have big upside from here.
The Canadian market remains an emerging one in this space, but the following two names are ones I think have the best upside potential for those looking to ride this wave higher over time.
Kinaxis
One major company that’s increasingly focused on AI technology is Kinaxis (TSX:KXS). The supply chain management software developer has seen strong demand for its core product portfolio. However, with AI, the company hopes to be better able to anticipate demand, control inventory, and improve its operational efficiency. That’s the sort of trifecta many investors are after right now.
Kinaxis’s software suite helps its customers do all these things, but amplifying the returns they see could allow for greater pricing power over time. Simplifying operations using AI is an easy-to-understand vertical and one that may lead to greater results for investors over time.
On that front, Kinaxis has demonstrated strong growth, with its AI-powered portfolio of products growing 18% year over year this past quarter. If the company can see a pickup among its key clientele in sectors such as automotive, aerospace, and big pharma, this stock certainly could take off.
Lightspeed Commerce
Although Lightspeed Commerce (TSX:LSPD) is mostly known for its e-commerce platform, it is also making major advancements in AI. The firm is using AI to expand its product line, provide better customer service, and boost revenue.
Using machine learning algorithms to provide clients with personalized suggestions is one of Lightspeed’s noteworthy AI projects. Lightspeed may increase sales and customer happiness by making appropriate product and service recommendations based on an analysis of the client’s preferences and past purchases. To optimize stock levels and cut expenses, the business is also investigating AI-powered inventory management systems.
I think this is certainly a high-risk pick, and it’s not necessarily one I’d put in my portfolio even after its recent decline. However, for those bullish on hyper-growth stocks seeing appreciation following another AI surge higher, this is a stock with unique leverage to this trend that may be worth considering.
