Artificial intelligence (AI) has become the centerpiece of modern investing, dominating conversations among traders and analysts alike. For many, it can feel like the AI rally has already passed, leaving little room to find quality opportunities.
But not all winners are the ones making the most noise. Some companies are quietly powering the infrastructure, managing critical data, or building enabling technologies behind the AI boom. By looking beyond headline names and focusing on infrastructure, partnerships, and data control, investors can uncover compelling opportunities.
Also Read: Investment strategies for Canadians
Here are two TSX-listed AI-related stocks that may be flying under the radar.
Enghouse Systems (TSX:ENGH)
Enghouse Systems is a software and services firm that operates through its Interactive Management Group (IMG), providing AI-driven customer interaction, analytics, and automation solutions. The company has expanded both organically and through acquisitions, strengthening its position in the enterprise software space.
Recent third-quarter results fell short of analyst expectations, leading to a pullback in the stock. However, the underlying fundamentals remain solid. Enghouse maintains low debt, a healthy balance sheet, and continues to deliver value to shareholders with a $0.30 quarterly dividend.
Its recurring revenue model, strong SaaS foundation, and a robust acquisition pipeline give it stable growth potential. For investors seeking an AI-linked stock with financial resilience, Enghouse could be a hidden gem ready to shine.
Also Read: Beginner-friendly Canadian stocks 2025
Computer Modelling Group (TSX:CMG)
Computer Modelling Group (CMG) is a niche software company specializing in reservoir simulation for the oil and gas industry. While not a pure-play AI firm, it integrates AI and analytics deeply within the energy sector—an area often overlooked in the broader AI conversation.
In its latest first-quarter results, CMG reported:
- Total revenue down 3% year over year
- Recurring revenue up 7%, signaling stable demand
- Free cash flow down 22%, due to market uncertainty
Despite these mixed results, CMG enjoys a strong competitive moat. Its highly specialized software has high switching costs, making it difficult for clients to move to competitors once onboarded—creating sticky, long-term relationships.
Valuation-wise, CMG trades at just 24× earnings, well below many AI peers. It also offers a 0.63% dividend yield, and with a beta of 0.08, it provides a defensive entry point into the AI sector.
The Bottom Line
Not all AI stocks are high-risk, speculative bets. Enghouse Systems and Computer Modelling Group stand out as steady, underappreciated players with real business models and sustainable earnings.
Both stocks have pulled back following earnings, potentially setting up attractive entry points for long-term investors. If you’re looking to gain exposure to AI without chasing the hype, these two Canadian “hidden gems” deserve a closer look.
Sign Up For our Newsletters to get latest updates
