Artificial intelligence (AI) technology and infrastructure is becoming increasingly integral to our everyday lives. I am not talking about just apps like ChatGPT or Gemini. AI is attracting a lot of investment in every aspect of our lives. A lot of tech companies are increasing investments in the technology to do what they do, but get better and better at it.
Tech stocks leveraging AI technology are already setting up for a more successful future that will be dominated by accelerated innovation due to the potential it has. Today, I will discuss a trio of Canadian AI stocks that should be on your radar if not in your self-directed portfolio to make the most of what’s to come.
Shopify
Shopify (TSX:SHOP) is a giant in the e-commerce industry known for creating a platform that allows merchants of all sizes to build an online presence. The $141.92 billion market-cap company has become a massive name in the industry in a short time. More recently, it has entered the AI space by using the technology to help its clients sell their products online more efficiently.
Shopify Magic is its primary AI service, a tool powered by AI that helps users write copy and design marketing collateral for their online stores. Its already successful online shops and payment processing service benefit from making e-commerce better for its clients. As of this writing, it trades for $109.84 per share and can be a good long-term holding to consider for your self-directed portfolio.
Celestica
Celestica (TSX:CLS) is a $11.63 billion market-cap company that provides tech-based supply chain solutions to clients worldwide. Headquartered in Toronto, the multinational design, manufacturing, hardware platform, and supply chain electronics manufacturer can be a good investment to consider. The company’s products power everything from cloud infrastructure to the latest AI systems to make supply chains better and better.
New hyperscaler deals and full-rack AI system wins amid surging demand for AI are making Celestica an increasingly attractive investment. The December 2024-ending quarter saw the company report its highest adjusted quarterly earnings ever, and it expanded its profit margins significantly. If you’re interested in investing in AI infrastructure, this might be the top pick. As of this writing, it trades for $98.05 per share.
Kinaxis
Kinaxis (TSX:KXS) is another player in the supply chain sector, focusing more on supply chain management and sales, as well as operation planning software. The Ottawa-headquartered $4.52 billion market-cap company is helping brands manage everything from real-time delivery to long-term planning using its platform. The AI-powered Maestro platform is building on the success of its flagship RapidResponse product to offer greater value to its clients.
The company’s push into next-gen AI tools makes it far better than most of its supply chain industry peers. The company is making it easier for its customers to benefit from AI technology without the need to have deep knowledge of the technology. This aspect will become increasingly important in the coming years. As of this writing, Kinaxis stock trades for $160.54 per share.
Foolish takeaway
As of this writing, the S&P/TSX Composite Index is down by 13.02% from its 52-week high. Stock market investing is inherently risky, and investing during a downturn is even riskier. You must have the stomach to tolerate significant risk to put your money in the market.
However, making calculated decisions and allocating capital to the shares of companies that can weather the storm and emerge stronger on the other side can be a good decision. If you’re not afraid of short-term losses and can hold onto dear life with discipline, these three TSX stocks can be good investments to consider.
