Have you ever considered investing in artificial intelligence in Canada in 2024? The opportunities in terms of the best stocks in this field are enticing and could hold incredible investment prospects for you. Discover the possibilities that await you now!
Understanding the Basics of Artificial Intelligence Stocks
The artificial intelligence (AI) is a branch of computer science aimed at creating machines capable of mimicking human intelligence. These machines make decisions without human intervention, learning from their past experiences to improve their future performance. AI stocks are primarily divided into two categories: companies that create AI technologies and those that use them.
Companies that Create AI Technologies
These companies develop and sell hardware, software, and essential services for AI. They are also involved in research and development of new forms of AI. For example, C3.ai offers software that other companies can purchase and use in their operations.
Companies that Use AI Technologies
These companies, often large-cap, integrate AI technology into their operations to optimize their processes. For example, giants like Amazon and Alphabet use AI to enhance user experience and efficiency in their operations.
The Best Artificial Intelligence Stocks in Canada
Although American companies often dominate the AI market, Canada also has promising companies in this sector. Here are some of the best AI stocks to watch on the Canadian stock market in 2024:
- BlackBerry (TSX: BB)
- CGI Group (TSX: GIB.A)
- Coveo (TSX: CVO)
- Docebo (TSX: DCBO)
- Lightspeed Commerce (TSX: LSPD)
- Kinaxis (TSX: KXS)
- Open Text (TSX: OTEX)
- Telus (TSX: T)
Focus on Three Key AI Stocks in Canada
Kinaxis
Based in Ottawa, Kinaxis offers cloud-based SaaS solutions for supply chain management. Their AI technology automates tedious processes, analyzes large amounts of data, and signals supply chain issues. This ability to make resource management more efficient positions Kinaxis for sustainable growth.
Docebo
Docebo uses AI to personalize training and learning programs for companies and their employees. Their platform analyzes how each employee learns and offers them specific content to fill gaps and accelerate their training. Docebo’s revenue experienced significant growth during the pandemic, and their clients include brands like Starbucks and Thomas Reuters.
Open Text
Open Text, based in Waterloo, offers cloud solutions for customer experience management, process automation, content management, and analytics. Their product Aviator uses AI to enhance these areas with technologies such as predictive analytics and generative AI. Currently, Open Text’s dividend yield is 3.4%.
Investing in AI ETFs in Canada
For those who prefer not to invest in individual stocks, exchange-traded funds (ETFs) focused on AI offer an attractive option. These ETFs allow you to diversify your investments while taking on less risk compared to investing in a single stock.
Here are some AI ETFs to consider:
- Evolve Artificial Intelligence Fund (TSX: ARTI)
- Global X Artificial Intelligence & Technology Index ETF (TSX: AIGO)
- Global X Semiconductor Index ETF (TSX: CHPS)
- Global X Big Data & Hardware Index ETF (TSX: HBGD)
- Global X Robotics & AI Index ETF (TSX: RBOT)
