Artificial Intelligence (AI) is becoming one of the fast-growing sectors in the world today and various Canadian AI stocks are already showing a lot of promise in this segment. Several Canadian tech companies have been enabling AI capabilities with some advancing innovations that have proved to be vital in daily interactions.
There has been an influx of investors to various Canadian AI stocks because of their strong outlook relative to other sectors of the economy that has been hurt by the pandemic. The adoption of tech has accelerated due to the crisis as various companies turn to seek to overcome the challenges posed by the pandemic. Here are some Canadian AI stocks that have performed well amid this COVID-19 pandemic.
Shopify to continue Q1 growth momentum to Q2 2020
One of the Canadian AI stocks that have been surging high this year is Shopify Inc. (NYSE:SHOP) which has surged 90%. It is one of the largest gainers and has been making a case to be the biggest Canadian company. The company helps small businesses set online marketplaces and over the COVID-19 period, it saw a surge in the number of businesses setting up online shops. As a result, the company reported exceptional results in the first quarter with revenue growing 47% YoY.
Since its last earnings release the stock has gained 1.7% and the upward trend is expected in the second quarter. The company ended the first quarter with $2.36 billion in cash and cash equivalents. Although the company didn’t offer guidance for the second quarter because of COVID-19 uncertainties, analysts have been upbeat about their estimates and they expect the company to post exceptional results.
Kinaxis’ software system tracks global shipments
Another hot Canadian AI stock currently is Kinaxis Inc. (OTCMKTS:FRFHF) which has also jumped almost 70% since the beginning of the year. The company benefitted significantly during the COVID-19 pandemic because of its AI-powered supply chain management solution. The software has been helpful to companies during the crisis as it helped them track shipments as well as inventory management following the disruptions caused by the pandemic.
As a result of the increase in demand for the company’s solutions, the company saw its revenue in Q1 grow by 15%. Equally the company maintained its 2020 outlook that included a 10% to 12% YoY increase in the sales forecast.
BlackBerry stock pops on acquisition rumors
BlackBerry Ltd (NYSE:BB) is also another Canadian AI stock that has been on an upward trend. The company’s cybersecurity division, Cylance, which it acquired in 2018, has been doing well which is an indication that the former smartphone giant might be getting back. Last week the company’s stock popped 10% on word that Fairfax Financial Holdings (OTCMKTS:FRFHF) was planning to acquire the company.
According to StreetInsider, Fairfax which is led by Prem Watsa had held talks with the management of Blackberry regarding an outright acquisition of the company. Rumour has it that BlackBerry has already formed a committee as well as hired investment experts to advise on a possible acquisition.