Top Canadian AI Stocks to Watch in 2025

Here are two top AI stocks long-term Canadian investors may want to consider right now.

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.

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.

Source: Getty Images

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.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Kinaxis and Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Tech Stocks

The RRSP (Canadian Registered Retirement Savings Plan) is a smart way to save and invest for the future
Dividend Stocks

Can You Have a TFSA, RRSP and FHSA at the Same Time? Yes. Here’s How They Fit Together

These three accounts can work together, with the FHSA serving a home purchase, the TFSA offering flexibility, and the RRSP…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

BlackBerry Stock Jumped 8% On Tuesday: What’s Going on ­– and Is It a Buy?

A growing QNX royalty backlog provides a solid base for future growth and is likely to support BlackBerry’s business.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

What Investors Need to Know About Owning U.S. Stocks in a TFSA

Do you own U.S. stocks in a TFSA? Learn how the 15% dividend withholding tax works, why Amazon pays none,…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

I’d Keep Constellation Software Stock Despite its 3% Organic Growth: Here’s Why

Constellation Software's acquisition strategy has driven the company's success. The growth runway remains strong.

Read more »

data center server racks glow with light
Tech Stocks

AI Data Centres Need Power: This Canadian Stock Just Won a 1GW Contract

Enerflex has landed substantial data centre equipment work. The opportunity now depends on what reaches shareholders after delivery.

Read more »

man makes the timeout gesture with his hands
Tech Stocks

The Tax Rules Canadians Should Know Before Starting a Side Hustle

A side hustle can fund investments, but taxes, business expenses, and sales-tax obligations determine how much money is actually yours.

Read more »

atomic particle
Tech Stocks

This TSX Tech Stock Trades About $1,000 Below Its Consensus Target

Constellation's consensus target sits about $1,038 above its dated share price, while acquisition-driven growth determines whether the optimism is earned.

Read more »

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

Celestica Raised Its 2026 Revenue Outlook to US$20.5 Billion: I Think the Stock Is a Buy Now

Here’s why Celestica’s growing role in AI infrastructure and its recent pullback make it one of the top Canadian stocks…

Read more »