The AI revolution and data centre buildout are moving ahead at a blistering pace. And while much of the buzz has surrounded the U.S. AI innovators, whether we’re talking about the AI labs at the frontier (OpenAI, Anthropic), the fast-moving hyperscalers, the semiconductor plays (from designers to fabs to wafer equipment makers), or AI software companies that are actually seeing their growth reach an inflection point of sorts, there’s no shortage of excitement.
On this side of the border, things might be less euphoric, with fewer names to directly play the AI boom. But underneath the surface of the value-rich TSX Index are some terrific Canadian companies that are helping fuel a Canadian version of the AI revolution.
Whether we’re talking about the rise of sovereign AI and the data centre buildout that will entail, the many software firms that have embraced AI to unlock even more growth, or the firms content with becoming the landlords and energy providers of the AI data centre buildout, there’s no shortage of less-obvious ways to play Canada’s very own AI boom.
With the Canadian banks setting AI-related monetization milestones, even Canada’s top financial players stand to benefit greatly from a revolution that might act as a quiet tailwind that helps the TSX Index take things to the next level.
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Shopify stock: A terrific AI play worth stashing an extra $7,000 into
One name that I find interesting as AI booms in Canada is Shopify (TSX:SHOP). Sure, it might not be spending heavily to build out the physical AI infrastructure. Instead, it’s doing the arguably tougher job of finding ways to monetize the profound technology. The company, which had embraced the rise of AI many years ago, is finally starting to feel the AI uplift.
With the latest quarter helping power shares of SHOP to a sudden melt-up and shares up close to 17% in the past week alone, new Canadian investors are starting to realize that Shopify isn’t just an AI wild card; it’s an AI monetization leader in the e-commerce scene. With Shopify AI tools helping power gross merchandise volume (GMV), I think it’s becoming clear that Shopify is standing out as an early AI monetizer.
If agentic AI continues to rise into the mainstream, my guess is that an even larger tailwind will hit the Canadian e-commerce firm. With the ecosystem ready and ever-improving AI features helping merchants, I’m starting to think that Shopify might be one of those few CapEx-light AI winners that the market has been sleeping on.
Of course, one strong quarter might not signify a new trend, but, given where the firm stands on AI, I find it hard to bet against the company as its shares finally look to break out to new all-time highs.
The bottom line
As most other investors look to the big spenders, I’d be more content sticking with a firm that’s letting others do the heavy lifting while it puts the infrastructure to use in meaningful ways that deliver major value for customers. It’s still early in the game to tell which AI applications will win, but Shopify, I think, is emerging as one top candidate after that impressive quarter.
