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Riding the Wave of Innovation: Top AI Stocks for Tech-Savvy Investors

The S&P/TSX Composite Index was down 137 points in mid-morning trading on Friday, June 23. The S&P/TSX Capped Information Technology Index was in the red during the same trading session. Artificial intelligence (AI) stocks have gained substantial notoriety over the past few years, especially with the rise of ChatGPT. Today, I want to look at three of the top AI stocks available to investors in the early summer season of 2023. Let’s jump in.

Shopify has regained big momentum in 2023: Here’s why it could go higher!

Shopify (TSX:SHOP) is an Ottawa-based commerce company that provides a commerce platform and services in Canada, the United States, Europe, and worldwide. Shares of this AI stock have increased 4.8% month over month as of late-morning trading on June 23. The stock has surged 69% in the year-to-date period.

The introduction of ChatGPT in November 2022 captured world attention as the chatbot was capable of distilling complex subjects and producing seamless, original material. In the first quarter (Q1) of fiscal 2023, Shopify announced a new AI shopping assistant on its Shop App. This assistant is powered by OpenAI’s ChatGPT API.

On the financial front, the company delivered total revenue growth of 25% to $1.5 billion. Meanwhile, gross profit jumped 12% to $717 million. Moreover, Shopify would go on to post an adjusted operating loss of $31 million, or 2% of revenue, compared to adjusted operating income of $32 million, or 3% of total revenue. Looking ahead, Shopify is forecasting revenue growth in line with the previous year.

Shares of this AI stock are trading in middling value territory at the time of this writing. Meanwhile, Shopify is well positioned to deliver very strong growth in the quarters to come.

Don’t sleep on this under-the-radar AI stock during the summer season

VIQ Solutions (TSX:VQS) is the second AI stock I’d consider snatching up before we move into the month of July. This Mississauga-based company operates as a technology and service platform provider for digital evidence capture, retrieval, and content management in Canada, the United States, Australia, and around the world. Shares of this AI stock have surged 62% over the past month. The tech stock has climbed 25% in the year-to-date period.

This company released its Q1 fiscal 2023 results on May 10. VIQ Solutions saw revenue dip 13% year over year to $10.1 million. Gross profit dipped to $4.4 million, or 44% of revenue, compared to $5.5 million, or 47% of revenue, in Q1 fiscal 2022.

Investors should feel good about VIQ Solutions’s revenue-growth trajectory. It offers solid value at the time of this writing. However, it may still need to weather near-term turbulence due to its precarious cash situation and fight for profitability.

One more AI stock I’m targeting right now

ATS (TSX:ATS) is a Cambridge-based company that provides automation solutions to a worldwide client base. Its shares have dripped 2.4% month over month as of early afternoon trading on June 23. This AI stock has climbed 40% in the year-to-date period.

Investors got to see this company’s fourth-quarter and full-year fiscal 2023 earnings on May 18. In Q4 2023, revenues jumped 21% to $730 million. Meanwhile, it posted adjusted basic earnings per share (EPS) of $0.73 — up from $0.60 in the previous year. For the full year, ATS achieved revenue growth of 18% to $2.57 billion. Meanwhile, adjusted basic EPS rose 3% to $2.37.

Shares of this AI stock are on track for strong earnings growth going forward. Factory automation is growing fast, and ATS gives investors exposure to that burgeoning space.

The post Riding the Wave of Innovation: Top AI Stocks for Tech-Savvy Investors appeared first on The Motley Fool Canada.

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More reading

Multiply Your Investment: 3 TSX Stocks to Buy Now Before They Break Out From the Crowd
Are These Canadian Tech Stocks Really Worth Adding to Your Portfolio? 
AI-Driven Revolution: These Stocks Could Be the Next Big Winners
Up by 68%: Is Shopify Stock a Buy in June 2023?
Shopify Stock and Docebo: Time to Load Up?

Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify and Viq Solutions. The Motley Fool has a disclosure policy.

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