The tech sector might have fallen out of favour among investors amid rising inflation and interest rates over the last year. However, there is a resurgence in tech stocks powered by artificial intelligence (AI). Investors who missed out on the tech boom that happened during COVID-19 might finally have the chance to get on a high-growth bandwagon again. This time around, it is being powered by AI.
The latest technological revolution is not something you want to miss out on. Companies adopting AI are more likely to achieve substantial growth in the coming decade and beyond. Those that fail to leverage the new technology risk being left behind. It is not just tech firms that engage in AI-related activities. The technology has applications across all sectors of the economy.
Today, I will discuss two stocks becoming a part of the AI revolution to grow and increase shareholder values.
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Shopify
Shopify (TSX:SHOP) might not be your typical AI stock, but it is a publicly traded company slated to become a winner due to the surge in AI adoption. The company’s foray into the space through AI-powered chatbots is just one of the spaces that could empower merchants using the platform.
Besides this, Shopify also plans to use AI-based solutions for spatial computing, integrating augmented reality and other new technologies into its sphere. Due to its open-minded approach to embracing, testing, and patenting new technologies, Shopify can set itself up for strong growth compared to companies in the space not leveraging AI. As of this writing, Shopify stock trades at $85.62 per share.
For its first quarter in fiscal 2023, Shopify delivered a 25% year-over-year revenue growth, and it can go on to report a $31 million adjusted operating loss, down from $32 million last year. With its financials improving, it could be the right time to invest in its shares.
VIQ Solutions
VIQ Solutions (TSX:VQS) is not a well-known tech stock, but it is an AI stock I would consider buying right now. The $14.91 million market capitalization company headquartered in Mississauga is a technology and service platform provider to clients in Australia, the U.K., Canada, and the United States. It services companies seeking digital evidence capture, retrieval, and content management.
As of this writing, this young AI stock trades for $0.44 per share, down by 78.12% from its 52-week high. VIQ Solutions released its first-quarter earnings for fiscal 2023 on May 10, reporting a 13% year-over-year revenue dip.
While the stock may have to continue weathering short-term turbulence due to macroeconomic factors weighing on its financial position, it can be an excellent stock to own to capitalize on the growing AI trend.
Foolish takeaway
While the business models of both tech stocks are different, the common factor that can fuel their growth for years to come is AI. Granted, Shopify stock and VIQ Solutions stock are not known as AI stocks. Still, the companies are integrating AI-powered features to enhance operations and future-proof themselves for the coming decades.
Of the two, I believe Shopify stock can be an excellent asset to own to capture truly outsized gains due to the booming AI space.
