These AI Stocks Are Actually Still a Bargain – and They're Canadian

These AI Stocks Are Actually Still a Bargain – and They’re Canadian

Let’s dive into two top Canadian AI stocks that have reasonable valuations and look poised for impressive upside over time.

Chris MacDonald

Chris MacDonald has had a love for finance his whole life, ultimately leading him to pursue an MBA in finance. He's worked as a financial analyst for a number of companies in the corporate finance and venture capital space during his 10-year investing career. He endeavors to follow in the footsteps of iconic investors like Warren Buffett in building a long-term defensive portfolio.

Published November 26, 2025 9:00 pm EST

Looking at the broader universe of artificial intelligence (AI) stocks, it’s really hard to find any companies a logical investor would deem to be a “bargain” right now.

Indeed, valuations have surged as growth expectations have shot to the moon. Hundreds of billions of dollars (some estimates are actually in the trillions of dollars over the longer term) will be spent on AI-related infrastructure tied to the long-term buildout needed to support this technological advancement.

I’m of the view that this technology will be revolutionary. However, I’m also concerned about where valuations of these growth stocks are today relative to this sector’s future growth potential.

On that note, I have found a couple high-quality Canadian AI stocks that appear to be flying under the radar, but also have excellent long-term growth potential and valuations that don’t make one’s eyes water.

AI image of a face with chips — Scource: Getty Images

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Kinaxis

One of the top Canadian tech stocks that’s become an AI play is Kinaxis (TSX: KXS).

Kinaxis is perhaps best known as a leading supplier of cloud-based supply chain software via its flagship RapidResponse platform. With a solid subscription-based business model, the company’s revenue and cash flows are much more predictable, and its client base has turned out to be quite sticky over time, something investors would think should lead to steady share price appreciation over time.

Such a situation hasn’t really materialized, despite efforts by the company to integrate AI into its core offerings. With KXS stock declining around 20% from its recent peak, I view this AI beneficiary as one worth buying.

Much of that has to do with the company’s valuation (less than 30 times forward earnings) in combination with 17% software as a service (SaaS) revenue growth this past quarter, as the company continues to grow its existing client base over time.

Docebo

Another top Canadian tech stock which has been propelled by some AI-related catalysts of late is Docebo (TSX: DCBO).

Shares of the SaaS company, which is also integrating AI into its core offerings, have been on a vicious downtrend in recent months. Down more than 75% from its pandemic peak (a level other notable Canadian tech stocks have since breached during this recent uptrend), it’s clear many market participants have moved on to other opportunities in this market.

The company’s 11% year-over-year revenue growth has been meaningful, with gross margins continuing to hover above 80%. And with earnings per share coming in at $0.34 per share this past quarter, this recent share price decline means DCBO stock is now trading at a valuation multiple of just 14 times forward earnings.

That’s far too cheap for a company with Docebo’s growth potential, in my view.