Forget Nvidia: Buy These 2 Canadian AI Stocks Instead

These two TSX AI stocks might offer a better alternative to investing in U.S.-based companies in the industry.

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Key Points

  • Canadian AI stocks like Kinaxis (TSX:KXS) and Shopify (TSX:SHOP) offer strong long-term growth potential as they integrate AI into supply chain and ecommerce solutions.
  • With global demand for smarter logistics and digital retail, these TSX tech leaders are well-positioned to benefit from the expanding AI boom.
  • 5 stocks our experts like better than [Shopify] >

Artificial intelligence (AI) stocks present some of the biggest investment opportunities for stock market investors worldwide. After all, AI integration has become a significant boon for various global industries. There is a lot more that the technology has to offer besides making your life easier for day-to-day tasks with ChatGPT.

Several AI stocks are making waves in the industry, with Nvidia being one of the most prominent examples. The stock has climbed to previously unimaginable levels, and early investors benefited the most from its foray into the AI space. While that might be a missed opportunity many regret, the TSX offers plenty of options you can consider for your self-directed portfolio.

Like several other industries, supply chain management and ecommerce sectors need the advantages of AI integration. Today, I will discuss two Canadian tech stocks you can consider adding to your portfolio to leverage the AI boom.

Kinaxis

Kinaxis (TSX:KXS) is one of the leading names in the supply chain management sector. Kinaxis is a $5.18 billion market-cap software solutions provider, operating at a global scale. The company’s solutions help its clients anticipate supply chain issues, streamline operations, and make better-informed business decisions.

The premier offering by the company, its RapidResponse platform, is powered by AI. The platform instantly recalculates supply, demand, inventory, and more for any data changes. Kinaxis has also innovated to create more AI-based tools that facilitate everything from sales to operations. Its enterprise-level solutions have helped Kinaxis secure deals with massive names like Ford and Cisco.

The world will continue needing better supply chain management solutions, and Kinaxis is in pole position to deliver. As of this writing, it trades for $183.29 per share.

Shopify

Shopify (TSX:SHOP) is another major Canadian tech stock that has started to foray into AI integration to improve its offerings. Shopify briefly became the biggest stock on the TSX by market cap after overtaking Royal Bank of Canada. A major correction saw it return to a comparatively modest $274.95 billion market capitalization as of this writing.

Shopify is an ecommerce giant that has innovated the space, rightfully becoming one of the fastest-growing tech firms. The rise of AI technology has seen it effectively integrate the tech across its ecosystems to service merchants better than ever before. While it might not offer the same multi-bagger returns to investors as during the tech sector boom, there is plenty of growth ahead as the industry grows. As of this writing, Shopify stock trades for $211.60 per share.

Foolish takeaway

Newer investors will love investing in these AI stocks. The two seem attractive for the immediate gains that might be on the horizon due to the early stages of the industry. Beyond that, AI integration has a long way to go, and there is plenty of growth to come. These two can be excellent long-term holdings for potentially multi-bagger returns even at current levels. If you are looking for growth in the long run, these can be good investments to consider.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.

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