Having spent years analyzing stocks and investing in the market, I’ve learned that not all growth stories need to start with hype. Some of the best ones begin with numbers consistently moving in the right direction. That’s exactly what’s happening with one TSX-listed artificial intelligence (AI) stock. It’s profitable, has strong recurring revenue, and it’s powering some of the most complex supply chains in the world. Yet, when you look at its valuation, it still feels like an undervalued stock hiding in plain sight.
What makes this even more exciting is how it’s using AI to solve real-world problems that companies are desperate to fix — not 10 years from now, but today. In this article, I’ll break down why Kinaxis (TSX:KXS) is more than just another tech stock and why I’m betting big on its AI chapter.
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Why Kinaxis is my top AI pick right now
In case you are unfamiliar, Kinaxis is a software firm that helps global businesses manage their complex supply chains through a single AI-powered platform called Maestro. It operates out of Ottawa and is part of the S&P/TSX Composite Index. After climbing by 19% over the last year, KXS stock currently trades at $199.23 per share with a market cap of $5.6 billion.
The recent strong momentum in this AI stock is partly driven by its consistent focus on strong financial execution and partly by its growing interest in enterprise-grade AI solutions. With Maestro’s generative and agentic AI features rolling out, Kinaxis is stepping into a whole new phase of product strength that the market is just starting to price in.
What the latest numbers are telling us
In the quarter ended in March 2025, the company’s sales rose 11% YoY (year-over-year) to US$132.8 million, exceeding Street analysts’ expectations. That’s a clear signal that more businesses are choosing its AI-based supply chain solutions.
On the profitability side, Kinaxis posted a 19% YoY jump in its gross profit for the quarter to US$86.5 million, pushing its margin up to 65% from 61% a year ago. Meanwhile, the company’s operating expenses held steady, and that helped adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surge by a strong 46% YoY to US$33.1 million, with margins expanding to 25%. Interestingly, Kinaxis’ efforts to expand its customer accounts and add new ones drove this growth.
Why I think the best is yet to come
At its flagship Kinexions event in April, Kinaxis showed off the next generation of Maestro, including Tariff Response, a new tool to simulate and manage trade disruptions. As supply chains continue to face political and economic shocks globally, tools like this become invaluable. The platform’s Agentic AI, described as digital coworkers to boost productivity, is set to go live in the second half of this year. And its Demand.AI solution continues to push forecasting accuracy higher by blending real-time external signals with internal data.
Overall, the company’s ability to serve big names like Pfizer, Colgate-Palmolive, and General Motors already shows the trust it commands in the industry. And with more enterprises moving toward AI-driven decision-making, Kinaxis is in the right spot at the right time — making it look cheap to buy for the long term.
