Pessimists claim that today’s artificial intelligence (AI) boom mirrors the dot.com explosion in March 2000. A pop of the AI bubble could result in huge losses for investors. However, unlike the situation 25 years ago, profitable tech giants, not just startups, are all-in on AI and its real-world applications.
There’s heightened interest in AI everywhere, from Earth to space. The technology is driving a deeper transformation in how humans interact with machines. Modern computing is now the backbone of innovation, with most companies joining the AI race to unlock value for their businesses.
Meanwhile, AI has fueled a massive rally in the TSX’s technology sector. One Canadian stock is particularly worthy of consideration as it could be the next big AI winner. Kinaxis (TSX:KXS) trades at $180.42 per share and is well-positioned for a breakout, given its new generative and agentic AI capabilities.
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Driving business value
AI can be found in modern supply chains, where Kinaxis drives business value. The $5.2 billion company provides cloud-based subscription software for supply chain operations globally. Today, it has a strong market position in AI-powered supply chain management.
The Ottawa-based tech firm developed the Kinaxis Maestro, an AI-powered orchestration platform that helps businesses navigate supply chain disruptions. More importantly, users can simulate and evaluate various scenarios, enabling them to respond quickly to supply and demand fluctuations.
On October 17, 2025, Kinaxis introduced Maestro Agents. This new AI-powered decision intelligence tool is embedded in the Maestro supply chain platform. It is very different from generic AI assistants; instead, it accelerates the agentic era for supply chain orchestration. The expansion of the Maestro ecosystem could strengthen the investment case for KXS in the AI space.
Foundation to deliver greater value
Kinaxis formed a partnership with Workday, an American cloud-based software company providing enterprise software for human capital management, finance, and analytics. The new partners will combine an AI-enabled, agentic framework across Kinaxis Maestro and Workday Adaptive Planning.
Robert Courteau, interim CEO of Kinaxis, said, “With an agentic framework connecting Kinaxis and Workday, executives can act in minutes with confidence, protecting margins, keeping customer commitments, and building resilience through connected scenario planning. With hundreds of joint customers already using both platforms, this partnership builds on that foundation to deliver greater value.
Financial highlights
In the first half of 2025, Kinaxis reported a 257% year-over-year jump in profit to US$34.3 million. Notably, total revenue and profit in Q2 2025 increased 15% and 437% to US$136.4 million and US$18.4 million, respectively, versus Q2 2024. According to Courteau, it was the strongest second quarter ever for new business. There’s a balance between new customer wins and expansion orders.
Courteau added, “As a result of this strong performance, including record profitability, we achieved our fourth consecutive Rule of 40 quarter and are increasing Software-as-a-Service (SaaS) growth guidance for 2025.” The Rule of 40 means the sum of the revenue growth rate and the profit margin of a well-performing SaaS company is 40% or higher.
Breakout is coming
Kinaxis plays a crucial role in the modern supply chain. With its strong financial results and robust SaaS revenue growth, the AI stock is a compelling opportunity for growth investors.
