AI Revolution: Canadian Investors Flock to Stocks Driving Innovation

AI stocks like Docebo should be on your watch list.

| More on:

Recent breakthroughs in artificial intelligence have the capacity to reshape many industries. Experts are already talking about how AI models can change the way we deliver healthcare, personalize education, and manage finances on a large scale. 

Canadian tech stocks are riding the wave, too. Here are the top three AI-adjacent stocks that should be on your radar if you’re trying to bet on innovation in this space. 

WELL Health

Vancouver-based healthtech company WELL Health Technologies (TSX:WELL) has delivered tremendous growth by acquiring small and mid-sized startups in the healthcare software space. Acquisitions in virtual healthcare and online pharmacy delivery helped them stay ahead of the curve during the pandemic. 

Now, the team is working on AI applications for healthcare services. The company has already rolled out WELL AI Voice, a transcription and voice-assisted data collection service that should help doctors manage their patients data more conveniently. 

I believe the company could have more opportunities to either develop or acquire AI-based healthcare apps in the future. This gives them exposure to the emerging revolution. 

WELL Health stock trades at a price-to-sales ratio of 1.3 and is on track to deliver revenue growth of up to 25% this year. Keep an eye on this underrated tech stock.

Docebo

AI’s killer feature is personalization and communication. These large language models (LLMs) can sift through a lot of data about a person or subject and concisely explain it in plain language. Which is why industry experts believe generative AI will have plenty of applications in education.

In fact, Khan Academy – a non-profit focused on online education platform – has already rolled out a personalized tutor feature powered by ChatGPT to help students learn. 

I believe enterprise training company Docebo (TSX:DCBO) has a similar opportunity. The company claims to have already integrated generative AI to help its corporate clients create presentations and worker training modules. Its recent acquisitions such as Edugo.AI could propel this initiative further. 

Investors could expect a bump in sales if any of these new AI experiments lead to better outcomes for corporate clients. The company’s client base is over 3500.

Keep an eye on this one if you’re looking for a Canadian AI stock bet. 

Kinaxis

Kinaxis (TSX:KXS) is another company that seems to be uniquely well positioned for the AI revolution. The firm offers supply-chain logistics software. I’m not an expert on this but I believe the software has potential for data analytics and forecasting based on existing supply chain data. That could unlock value for Kinaxis and its customers. 

The Ottawa-based tech company has already rolled out its Planning AI analytics platform to customers. If it gains traction, other AI-based tools could be on the horizon. 

Kinaxis stock trades at roughly 10 times sales, which is in line with other enterprise software firms. It’s not undervalued or cheap. But KXS is certainly worth a closer look if you’re looking for a stable tech stock to bet on. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani has positions in Well Health Technologies. The Motley Fool recommends Docebo and Kinaxis. The Motley Fool has a disclosure policy.

More on Tech Stocks

Nvidia Voyager Headquarters
Tech Stocks

Why Nvidia Stock Rallied (Again) on Tuesday

The chipmaker is expected to report earnings this evening.

Read more »

hand stacking money coins
Tech Stocks

3 Growth Stocks That Are Screaming Buys in November

The market might be soaring, but there are still lots of deals to be had. Here are three discounted stocks…

Read more »

Rocket lift off through the clouds
Tech Stocks

Why I’d Buy Constellation Software Stock, Even at Today’s Prices

Despite trading at a relatively frothy multiple, Constellation Software (TSX:CSU) stock still looks like a buy right now.

Read more »

profit rises over time
Tech Stocks

2 Reasons to Buy Kinaxis Stock Like There’s No Tomorrow

Solid revenue growth, improving profitability, and its focus on AI-powered supply chain solutions make Kinaxis stock really attractive to buy…

Read more »

Muscles Drawn On Black board
Tech Stocks

3 No-Brainer Tech Stocks to Buy Right Now for Less Than $500

If you have a bit of cash you're looking to set aside, these are the easiest tech stocks for some…

Read more »

how to save money
Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow

Here's why Shopify (TSX:SHOP) stock certainly looks like a buy for long-term growth investors looking for a top TSX stock.

Read more »

A child pretends to blast off into space.
Tech Stocks

2 Compelling Reasons to Snap Up Constellation Software Stock Now

Here's why I think Constellation Software (TSX:CSU) is a top-tier growth stock to own for the long-term right now.

Read more »

hot air balloon in a blue sky
Tech Stocks

3 TSX Stocks Still Soaring Higher With Zero Signs of Slowing

These three stocks may be soaring higher and higher, but don't let that keep you from investing – especially with…

Read more »