How to Invest in Canadian AI Stocks for Long-Term Gains

If you’re looking for top tech stocks, these AI stocks are certainly ones to consider for long-term gains.

| More on:
The letters AI glowing on a circuit board processor.

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

Investing in artificial intelligence (AI) stocks offers an exciting opportunity for long-term gains, particularly as this transformative technology becomes deeply embedded in every industry imaginable. From healthcare to logistics and beyond, AI has the power to revolutionize how businesses operate.

As a long-term investor, your focus should be on stocks leveraging AI for growth while maintaining strong financial health and a clear strategic vision for the future. Let’s explore the best Canadian AI stocks and their potential to deliver value over the long term.

Created with Highcharts 11.4.3Descartes Systems Group + Open Text + Celestica PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Descartes

When it comes to Canadian companies excelling in AI, Descartes Systems Group (TSX:DSG) is an exceptional example. Descartes provides cloud-based logistics and supply chain management software, utilizing AI to optimize and automate critical processes like route planning, delivery scheduling, and real-time tracking.

In its latest quarterly earnings, Descartes reported a 14% year-over-year increase in revenue to $607.7 million, along with a 23.4% rise in earnings. These figures reflect the growing demand for AI-driven solutions in global logistics, especially as companies strive for efficiency in increasingly complex supply chains. With supply chain disruptions becoming more common in recent years, Descartes is well-positioned for sustained growth.

Celestica

Another standout Canadian AI company is Celestica (TSX:CLS), a global leader in hardware platform and supply chain solutions. Celestica integrates AI into its manufacturing processes, using predictive analytics to enhance efficiency and reduce waste. The AI stock’s efforts have paid off significantly, with 22.3% year-over-year revenue growth to $9.2 billion in its most recent earnings report.

Celestica’s success is rooted in its ability to cater to high-demand sectors such as renewable energy, healthcare, and aerospace – all of which are increasingly reliant on AI-driven solutions. This diversified approach ensures that Celestica remains a robust player in the AI landscape.

OpenText

Of course, no discussion of Canadian AI stocks would be complete without mentioning OpenText (TSX:OTEX). OpenText is a global leader in enterprise information management, using AI to help organizations manage, analyze, and protect vast amounts of data.

Recent earnings revealed that OpenText continues to experience robust growth in its cloud business, with AI serving as a core component of its offerings. The AI stock’s acquisition of Micro Focus further strengthens its foothold in the AI and cloud ecosystems, thus enabling it to expand its portfolio and enhance its competitive edge.

What to watch

If you’re looking to invest in AI, it’s important to understand the broader trends driving the industry. The adoption of AI is accelerating, with companies in almost every sector recognizing the potential of this technology to improve efficiency, reduce costs, and create new revenue streams. In Canada, government support and private sector investment in AI research and development create a fertile environment for AI stocks.

Yet long-term investors should also be mindful of the risks and challenges associated with AI stocks. While the potential rewards are substantial, the AI industry is still evolving, and competition is fierce. Smaller companies, in particular, may face volatility as they work to prove the viability of their business models. Diversification is crucial to managing these risks.

Another important aspect of investing in AI is timing. While it’s tempting to dive in during moments of hype, seasoned investors know that the best opportunities often come during market pullbacks. The recent dip in tech stocks, for example, could present a chance to buy into solid companies like Descartes, Celestica, and OpenText at more attractive valuations.

Foolish takeaway

The future outlook for AI stocks, particularly in Canada, is incredibly optimistic. As AI becomes increasingly integrated into daily life, the demand for innovative solutions will only grow. AI stocks like Descartes, Celestica, and OpenText are well-positioned to capitalize on this trend, offering investors a compelling mix of stability and growth potential.

Altogether, investing in AI stocks for long-term gains requires a combination of careful research, strategic diversification, and a commitment to staying the course. By focusing on financially sound companies like Descartes Systems Group, Celestica, and OpenText, you can position your portfolio to benefit from the ongoing AI revolution. With strong track records, innovative approaches, and bright future outlooks, these Canadian AI stocks are an excellent starting point for any investor, especially those looking to capitalize on one of the most exciting trends of our time.

Should you invest $1,000 in Celestica Inc. right now?

Before you buy stock in Celestica Inc., 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 Celestica Inc. 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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Descartes Systems Group. 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 »