If you’ve been overloading on the U.S. tech names for your generative artificial intelligence (AI) and agent exposure, you’re not alone. Indeed, the Magnificent Seven and other high-flying American stocks have been the stars of the show in the past couple of months.
Sure, there was a pit stop of sorts when stocks corrected earlier in the year. But it didn’t take long before new highs were met and the S&P 500 became a bull’s paradise again. Indeed, there have been some harsh criticisms calling for another correction. And while it’s not clear which pundits feel “sour grapes” about the whole V-shaped recovery, I think it’s the skepticism and cautiousness (surrounding trade and the macro picture) that make this bullish ascent a sustainable one.
Indeed, wait around for a correction, and you could miss a huge upward move. And there may not be a second chance to punch your ticket at lower prices. Either way, the AI trade, I think, is getting slightly expensive, especially regarding high-flying ones south of the border that folks may chase based solely on momentum. In Canada, I simply see more value to be had, especially in the small but still notable technology scene.
In terms of AI bang for the buck, I’d look seriously at one name that may very well do just as well, if not better than their U.S. counterparts. So, if you’re looking to “buy Canadian” with your next big tech stock picks, the following stock may be worth exploring further.
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Shopify
In numerous prior pieces, I’ve pounded the table on Shopify (TSX:SHOP), noting its highly underestimated AI prowess. After a blowout quarter that paved the way for a single-day gain of 22% and more AI-related commentary from management, it’s now more apparent that Shopify is a firm that can raise the bar on its growth as more customers call for AI, either to enhance performance or save money.
So, what to do if you missed SHOP stock’s latest melt-up?
I think investors haven’t really missed all too much in the grander scheme of things, especially if CEO Tobias Lütke can continue to execute. Trade war or not, Shopify’s momentum will be tough to stop, especially as the firm looks to make good on its profoundly impressive AI strategy. As others look to commoditized large language model (LLM) makers, I think they could be missing the real opportunity with companies, like Shopify, that are building on top of such models to enhance their platforms and drive next-level profitability for shareholders.
In short, if I were to remake the Magnificent Seven, Shopify would be one of the names to make the cohort. After a 173% gain in two years, it’s clear that the AI tech titan is back on the right track.
Looking ahead, I’d look for Shopify’s AI products to mature by leaps and bounds. Whether we’re talking about greater ease of use, AI-driven marketing, more automation, or greater personalization, there are so many pathways for Shopify to keep on growing. If it gets AI right in 2026, count me as unsurprised if SHOP stock makes a run for $250.
