The artificial intelligence (AI) revolution is upon us, and investors all around the world are looking to position their portfolios for the long term by investing in companies that are exposed to this space. Of course, picking the top AI stocks to buy right now is a difficult proposition. Much of that is because many of the growth stocks in this space are trading at sky-high multiples that some value investors simply can’t justify.
That makes sense. However, the good news is that in some corners of the market, certain AI stocks are certainly worth considering.
I think these two Canadian companies are truly flying under the radar in this space. Here’s why these two AI stocks still look interesting to me right now.
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Docebo
One of the more overlooked Canadian tech stocks I think is worth considering in this current market is Docebo (TSX: DCBO). The company provides a range of analytics tools aimed at helping its customers drive improved efficiencies and decision-making with technology.
As may be surprising (to no one), Docebo has quickly pivoted to becoming an AI-first company. The company’s focus is on providing world-class AI-powered learning management systems (LMS); the hope for many investors is that Docebo will prove to be one of the companies on the leading edge of innovation in a very scalable space, which is the training solutions market.
The company’s AI technology claims to improve learning outcomes for those on its platform and has shown strong engagement thus far. With greater efficiencies created for its end users via automation and the simplification of various tasks, the idea is that Docebo should be able to sell its wares in greater numbers over time as more companies jump on board.
Thus far, the company’s marketing efforts and word-of-mouth-driven growth have provided a strong fundamental-driven upside for investors to consider. With double-digit growth likely to accelerate moving forward, I think the company’s scalable business model is one investors may want to consider adding exposure to here.
Kinaxis
Kinaxis (TSX: KXS) has performed much better than Docebo over the past year, as the companies’ respective stock charts show. There’s good reason for that, given the company’s focus on supply chain solutions for a very stable clientele.
Indeed, aside from AI catalysts (which Kinaxis certainly has), the company’s core business is one that I’d consider to be more stable than that of Docebo. A global leader in supply chain management solutions and operations planning software, Kinaxis has proven to be a key beneficiary of many of the supply chain snarls we have seen in recent years, particularly coming out of the pandemic.
That said, like other tech companies, Kinaxis has really honed in on AI as a way to accelerate its growth prospects. The company is looking to provide more in the way of real-time insights with its flagship RapidResponse platform. This platform is one Kinaxis’s team is focusing on from an AI integration perspective, providing a competitive edge for customers looking to forecast demand and optimize supply chain operations using real-time data.
We live in a real-time world. As such, Kinaxis is one of those companies looking to provide its clientele with what it needs.
With strong earnings and revenue growth backing up this story, Kinaxis is a top growth stock I wouldn’t sleep on right now.
