Finding top artificial intelligence (AI) stocks to invest in right now is difficult for a number of reasons. For one, market dynamics are not generally positive for this space. Companies in the AI world have seen their valuations run up to incredible highs, at least to start this year. But with investor sentiment souring significantly of late, the question is whether now is really the time to load up on stocks that appear to only have more downside ahead.
I think there’s good news for investors looking at this space. For one, the AI race is a global one, and there are plenty of AI-adjacent companies that aren’t trading at exorbitant multiples that are worth considering. In Canada, this is even truer.
Here’s one top Canadian AI stock I’ve had my eye on for some time as a potential winner. For those looking to throw $1,000 at this space, this is one place I’d start looking.
Docebo
Docebo (TSX:DCBO) is a company I’ve highlighted in the past as a potential Canadian AI winner, and I think this is perhaps truer now than it has been in years past.
Indeed, looking at the company’s stock chart above, it’s clear that Docebo is a company that’s not particularly in favour of investors right now. This is a stock that’s down nearly 35% on a year-to-date basis alone and down over most time frames since its lows in 2022.
However, this is one of those growth companies I think could have big upside over the long term if its pivot toward becoming an AI-first concern takes hold. The company provides learning management systems (LMS) to a range of clientele and has been focused on integrating AI capabilities into its offerings. The hope is that these leading LMS products will drive outsized growth over time, though investors have yet to see the desired top and bottom impacts thus far.
Docebo notes that the company has seen strong engagement and improved learning outcomes for those using its platforms. That’s great. But investors clearly want to see more in the way of earnings growth. And given the company’s current price-to-earnings multiple of around 35 times, if growth doesn’t materialize as expected, there could be more downside here.
That said, I think an AI-driven acceleration of revenue and earnings could be on the horizon. If that materializes, this is a stock that investors may kick themselves for not owning here.
We’ll see.