Artificial intelligence (AI) has become the most exciting theme in tech investing today. From smart cars to cybersecurity, AI is being woven into just about everything. While U.S. tech giants continue to lead the headlines, some Canadian firms are quietly carving out their place in this AI-driven world. One contender? BlackBerry (TSX:BB). No longer a phone maker, BlackBerry stock is aiming to be a software heavyweight, and it may be better positioned than most think.
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Into earnings
BlackBerry stock recently released its earnings for the first quarter of fiscal 2025. Revenue came in at US$144 million, beating analyst estimates of US$132 million. BlackBerry stock reported a generally accepted accounting principle (GAAP) operating loss of US$39 million and a loss before income taxes of US$8 million, with a GAAP basic loss per share of US$0.07. Total company gross margin was 67% for the quarter, up from 65%, which shows that it’s tightening operations even while it continues to invest in growth.
BlackBerry’s core business is now split between Cybersecurity and Internet of Things (IoT). The cybersecurity segment brought in US$85 million, accounting for over half the revenue and exceeding guidance. That might not sound flashy, but it’s where AI is starting to play a larger role. BlackBerry stock is developing artificial intelligence-driven tools to proactively detect and respond to threats. These aren’t just incremental improvements, but fundamental to how modern digital infrastructure stays safe.
The IoT segment brought in US$53 million, up 18% year over year, representing a major long-term opportunity. BlackBerry stock’s QNX software powers embedded systems in vehicles, factories, and other connected environments. QNX is already in over 235 million vehicles, and as cars get smarter and more autonomous, this segment could explode in value. AI in vehicles isn’t just about self-driving; it’s also about managing complex in-car systems, diagnostics, and even predictive maintenance.
More to come
What makes BlackBerry particularly interesting as an AI play is its focus on secure, real-time, embedded AI. Unlike companies building massive cloud-based language models, BlackBerry is making AI functional in edge environments, places where internet access is spotty or latency matters. Think battlefield equipment, connected vehicles, or industrial controls. In these environments, safety, speed, and trust are paramount. That’s a niche BlackBerry stock could dominate.
Still, investors need to tread carefully. BlackBerry stock is not profitable yet. Despite improving margins, it continues to post net losses and faces stiff competition from more agile and better-funded players. Moreover, its plans to spin off the IoT business were delayed, introducing some strategic uncertainty. Investors don’t love delays. The company has US$283 million in cash and equivalents, which gives it breathing room, but the pressure to execute is building.
Is it valuable?
From a valuation standpoint, the stock remains under pressure. Shares are down significantly from earlier highs and trade just above $5.79. For some, that’s a red flag. For others, it’s a potential value opportunity. The current valuation reflects a lot of pessimism, so any catalyst, such as securing a major contract or re-accelerating IoT growth, could trigger a sharp upside.
The good news is, BlackBerry seems to understand its own strengths. In the earnings report, management emphasized a focus on operational efficiency and long-term partnerships with governments and major manufacturers. It’s not chasing hype, but building infrastructure.
Bottom line
So, is BlackBerry stock the next big AI winner? It depends on what kind of AI investor you are. If you’re looking for flashy consumer apps or viral breakthroughs, this isn’t it. But if you believe AI’s biggest impact will be under the hood, in the systems that run cities, cars, and corporations, BlackBerry stock might be the quiet Canadian player to watch. It’s not a moonshot, but it could be a comeback.
