Big Tech giants, including Nvidia, Alphabet, Amazon, Microsoft, Meta, and Oracle, have dominated the artificial intelligence (AI) narrative in recent years. However, several other companies are quickly gaining traction in this highly disruptive space, but are flying under the radar.
Here are two such little-known Canadian AI stocks you can buy and hold in October 2025.
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Is this Canadian AI stock a good buy?
Valued at a market cap of $4.9 billion, Kinaxis (TSX:KXS) provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada. It offers RapidResponse, an AI-infused end-to-end supply chain orchestration solution that encompasses concurrency, AI, advanced analytics, user experience, developer studio, integration, and security.
Kinaxis serves aerospace and defence, automotive, consumer products, high-tech and electronics, industrial, life sciences, logistics, and retail industries.
Kinaxis delivered strong second-quarter (Q2) results that topped company records across multiple metrics. The supply chain software company reported its best Q2 ever in terms of new business wins. Revenue climbed 15% to $136.4 million while SaaS (software-as-a-revenue) jumped 17% to $88.4 million.
The AI entity’s annual recurring revenue reached $391 million, representing a 15% year-over-year growth. Half of this growth was attributed to new customers, while the other half resulted from existing customers purchasing additional services.
Kinaxis reported that its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 54% to a record $33.7 million, indicating a margin of 25%, up from 19% last year. It was the fourth straight quarter of the Rule of 40 performance, which combines growth and profitability metrics.
Kinaxis raised its SaaS revenue guidance to 13-15% growth for the full year. Management cited improved win rates and stronger pipeline conversion under new sales leadership.
Kinaxis is rolling out new artificial intelligence features called Maestro that help automate supply chain decisions. Three of Gartner’s four “Masters of Supply Chain” for 2025 are already Kinaxis customers, and the company is working with early adopter clients to refine these AI tools before broader market launch.
Kinaxis increased operating cash flow by 72% to $22.6 million and ended Q2 with $329 million in cash. Analysts tracking the TSX tech stock forecast it to increase free cash flow from $107 million in 2025 to $255 million in 2029.
Moreover, its adjusted earnings per share are expected to increase to $7.80 in 2029, up from $2.36 in 2024. If the TSX stock is priced at 35 times forward FCF, it should gain 80% within the next four years.
Is this TSX tech stock undervalued?
Down 67% from all-time highs, Docebo (TSX:DCBO) is another AI stock that should be on your watchlist in 2025. Docebo provides enterprise-facing e-learning solutions and exceeded estimates across key metrics in Q2.
The learning management software company raised its full-year revenue guidance driven by momentum in mid-market customers. Moreover, the company added a major expansion deal with a Big Five tech customer, which involves customer training use cases and represents a large six-figure contract.
Technology companies continue to lead adoption, followed by sectors such as healthcare and financial services. Docebo landed 65% of new customers with multiple use cases, showing buyers want comprehensive solutions.
Docebo launched Harmony, its new agentic AI platform, ahead of schedule. Customers can now search the platform using natural language queries, and additional automated features will roll out by year-end. Early usage metrics look promising, with customers creating over 20,000 minutes of AI-generated video content.
Moreover, Docebo received FedRAMP certification earlier than expected, unlocking a US$2.7 billion market across federal, state, and local agencies.
Analysts tracking DCBO stock forecast its free cash flow to increase from US$28 million in 2024 to US$157.40 million in 2029. If the AI stock is priced at 15 times forward FCF, it could almost triple over the next four years.
