You don’t have to look far to uncover for of the market’s best long-term growth plays. Disruptive innovation seems to be alive and well in Canada, with a good number of intriguing artificial intelligence (AI) companies that (hopefully) may go public in the future. With Apple (NASDAQ:AAPL) recently gobbling up Darwin AI, a firm that may have tech to shrink AI models down, it’s Canada’s tech scene that could be drawing in more attention in the coming months and quarters, as I noted in a prior piece.
More recently, Apple has also been reportedly chatting with various firms about teaming up on AI. Indeed, OpenAI (the maker of ChatGPT) was one of the firms the iPhone maker was reportedly in discussions with. However, the most remarkable part of the recent report (from the Wall Street Journal) was that Apple may have also been chatting with another Canadian AI firm: Cohere.
Cohere: AI innovation on this side of the border
Undoubtedly, Apple has been monitoring Canada’s tech scene. And though nobody knows whether or not Cohere will partner with Apple, I think the move shows just how powerful Canada’s tech scene may be in this AI age. Sure, the U.S. tech scene (think Silicon Valley) will receive a lion’s share of the investment and attention. However, Apple’s recent moves suggest that it’s a mistake to ignore the innovative potential of Canada’s under-the-radar tech scene.
In light of Apple’s recent Darwin AI deal and the latest round of Cohere partnership rumours, Canadian investors should give the TSX tech scene a second look as we enter the summer months. Indeed, the stage could be set for a pretty hot summer for AI stocks as the rally continues.
Kinaxis: A Canadian AI company that’s often overlooked by investors
Kinaxis (TSX:KXS) is a software company in the supply-chain management business. The stock is often overlooked, especially these days, now that there’s less pandemic-fuelled chaos hitting the supply chains of many firms. That said, the company continues to innovate, especially on the front of AI. As long as the firm continues investing in AI innovation, I think demand for its product will follow.
For now, KXS stock stands out as a high-growth mid-cap that far too many investors are sleeping on. At writing, shares look quite frothy. But compared to the growth that could be on the horizon, I’d be willing to pay up for exposure, especially given management’s capabilities. Kinaxis is actively building AI for the supply chain.
As the firm continues leaning heavily on such profound, new-age technologies, I expect shares could begin to gain more attention, not just from Canadian investors but global ones. Though I don’t view Kinaxis as a takeover target, I think it could emerge as one of the fastest growers between now and 2030.
Indeed, there’s a lot to gain if Kinaxis can continue advancing its AI offerings on the supply and demand side. All considered, shares look to be one of the more exciting AI stocks in the Canadian market. And while it’s in a rut today, I view AI as a major catalyst that could kick in within a few years.
