In this article, we will discuss an AI stock that can be the best investment of this decade.
If you’re aiming to build long-term wealth and avoid getting caught up in short-term market noise, investing in transformative trends like artificial intelligence (AI) is a smart strategy. AI is on track to reshape major industries — from automation to cybersecurity — and could unlock trillions of dollars in global economic value.
For investors, the key is to focus on companies that aren’t just dabbling in AI, but are fully embedding it into scalable, revenue-driving platforms. One Canadian tech firm stands out in this regard — and could be among the top AI investments to hold over the next decade.
A Canadian AI Leader to Watch: Open Text (TSX:OTEX)
Open Text, a $10 billion enterprise software company, is making bold moves in the AI space. Its AI-powered platform, Open Text Aviator, is helping businesses worldwide automate workflows, enhance cybersecurity, and analyze vast volumes of data in real time.
Currently priced at around $38.90 per share, Open Text offers investors an attractive 3.7% dividend yield. While the stock has climbed nearly 8% in the past month, it’s still trading 18% below its 52-week high — potentially offering value for long-term investors.
What’s Driving the Comeback
Open Text’s recent stock rebound was fueled by strong cash flow numbers and margin improvement. In its latest quarterly report (ended March), the company generated US$402 million in operating cash flow and US$374 million in free cash flow — both showing year-over-year growth despite a slight decline in overall revenue.
That revenue dip was due in part to macroeconomic challenges and the strategic sale of a legacy business unit. Yet, the company’s core cloud segment has remained remarkably resilient, marking its 17th consecutive quarter of growth. This highlights the strength and consistency of Open Text’s subscription-based model.
Focused on the Future with AI and Automation
Open Text’s growth strategy is increasingly centered around AI, automation, and cloud innovation. Its latest product launch — Cloud Editions 25.2 — blends AI tools with hybrid cloud capabilities and cybersecurity features into a unified enterprise solution.
The company is also pushing forward with a major business efficiency initiative, projecting up to US$550 million in annual savings through automation and AI investments. Key priorities include scaling its Aviator AI offerings, enhancing enterprise content tools, and advancing its cybersecurity solutions.
The Bottom Line
Open Text is not just an AI stock that can be the best investment of this decade— it’s building the infrastructure for businesses to succeed in an AI-driven world. With recurring revenue streams, improving margins, and a clear focus on future-ready technologies, this Canadian tech stock could prove to be a standout performer in the years ahead.
If you’re looking for a long-term AI investment with real substance, Open Text might be one of the best picks this decade.
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