Buy the Dip: The 3 Best AI Stocks in Canada Right Now

AI stocks may be down right now, but don’t count them out if you want long-term income.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published July 3, 2025 10:00 am EDT

| More on: BBCVOOTEX

When the market pulls back, it’s easy to panic. But seasoned investors often see dips as a gift. That’s especially true when it comes to high-potential areas like artificial intelligence (AI). AI stocks aren’t just hyped; many are becoming central to how businesses operate. And while the U.S. gets a lot of attention, Canada has its own roster of AI-related companies worth a closer look. Right now, three TSX-listed names stand out after recent pullbacks.

A person uses and AI chat bot — Source: Getty Images

OpenText

OpenText (TSX:OTEX) is one of Canada’s largest software companies. It has been steadily building out its AI capabilities, focusing on AI-driven automation, analytics, and cybersecurity. It’s also a proven acquirer, using strategic purchases to expand its reach.

Most recently, OpenText reported its third-quarter 2025 results. The company generated US$1.4 billion in revenue and adjusted earnings per share of US$0.82. While this was a bit lower than the previous quarter, it still reflected solid profitability. Net income came in at US$92.8 million. With a gross margin of nearly 71% and strong recurring revenue, OpenText is built for resilience.

The AI stock has slipped recently, trading around $39 as of writing. That’s a dip of about 17% from its earlier highs. But for long-term investors, it may offer a great entry point into a profitable company that’s embedding AI across its entire enterprise platform.

Coveo

Coveo Solutions (TSX:CVO) is more of a pure-play AI stock. The company builds AI-powered search, recommendation, and personalization tools for large organizations. That means when you’re shopping online or searching a company’s website, Coveo helps make that experience smarter and faster.

In its latest results, Coveo reported US$34.4 million in revenue for the fourth quarter of fiscal 2025. That’s a 5% increase from the same period last year. While the AI stock still posted a net loss, it had positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$0.7 million. Its subscription revenue grew, and the company noted that demand for its generative AI features was strong.

The AI stock has pulled back since early spring but recently bounced back about 25% in June! Even so, it’s still trading about 11% below its 52-week high, giving investors a possible opportunity to buy in while the valuation remains moderate.

BlackBerry

Then there’s BlackBerry (TSX:BB), the comeback kid of Canadian tech. While most people still associate it with old smartphones, it has completely reinvented itself. Today, it focuses on cybersecurity, the Internet of Things, and embedded software. Its AI capabilities centre on threat detection and embedded analytics.

Recently, it released its fiscal first‑quarter 2026 earnings, reporting revenue of US$121.7 million, down 1.4% from last year but still above expectations. That $121.7 million figure that beat consensus marked its first generally accepted accounting principles (GAAP)‑level profit in three years, with net income of US$1.9 million.

It also delivered adjusted earnings per share of US$0.02, beating the US$0.00 consensus. The AI stock repurchased US$10 million worth of shares and ended the quarter with US$382 million in cash and investments. It also raised full‑year revenue guidance to US$508–538 million, up from US$504–534 million. The AI stock trades around $6.80 following an earnings jump, well off its previous highs but gaining on the strong results. This could be a deep‑value play for investors ready to look beyond legacy perceptions.

Bottom line

Buying the dip takes guts. But if you believe in AI’s long-term potential, these Canadian stocks offer a chance to get in before the next wave of investor enthusiasm. Whether you prefer stability, growth, or turnaround stories, OpenText, Coveo, and BlackBerry each bring something unique to the table. And right now, the valuations look more attractive than they have in months. Sometimes, the smartest move is buying when others are hesitant, and these three AI stocks might just prove that right.