In this article, we will discuss the Top AI Stocks Trading in Canada.
As artificial intelligence dominates headlines, Canadian investors find themselves navigating two overlapping but distinct trends: investing in AI (buying shares of companies leveraging or developing the technology) versus using AI to invest (employing AI-powered tools to guide portfolio decisions).
Admittedly, I’m cautious by nature when it comes to hype – especially the kind of hype AI is getting these days. That said, I use large language models (LLMs) regularly and recognize the massive productivity benefits they offer. Still, I remain unconvinced that the technology is poised to reshape the world at the scale some AI optimists predict.
When it comes to gaining exposure to AI through equities, Canadian investors do have options. While Canada isn’t home to any pure-play AI giants like Nvidia or OpenAI, it does offer several top-tier tech companies integrating AI into their platforms in meaningful ways. Here are some of the Top AI Stocks Trading in Canada.
Also Read: AI Tech Stocks in Canada
Shopify (SHOP)
This is one of the Top AI Stocks Trading in Canada.
Shopify, headquartered in Ottawa, is one of Canada’s largest tech firms. The company provides e-commerce infrastructure for businesses of all sizes and boasts a market cap of over US$140 billion (around C$200 billion). Shopify isn’t an AI company at its core, but it’s increasingly using AI to enhance the user experience. Its new tools, Shopify Magic and Shopify Sidekick, utilize generative AI to write product descriptions and assist merchants with tasks like data analysis and customer insights. These features aim to improve productivity for Shopify merchants while deepening the platform’s value proposition.
Shopify’s stock has already experienced a significant rebound – up about 88% over the past year. It trades at a premium, with a trailing P/E around 70, signaling high expectations for future growth. Analysts are generally optimistic, with most issuing “Buy” or “Outperform” ratings, but investors should tread carefully. If AI doesn’t meaningfully lift earnings in the next few years, the stock may struggle to justify its lofty valuation.
Read Next: Buy These Canadian AI Stocks
Open Text (OTEX)
Open Text (OTEX) is one of the Top AI Stocks Trading in Canada.
Based in Waterloo, Open Text is a veteran enterprise software company specializing in information management, content services, and digital workflow tools. With a market cap around C$8 billion, it’s one of the country’s most established tech names. Open Text is embedding AI and machine learning into its product suite. Its OpenText Aviator platform adds predictive analytics and generative AI capabilities to help enterprise customers process and extract value from unstructured data. AI enhancements are now part of its offerings in cybersecurity, document automation, and workflow intelligence.
Open Text trades at a relatively modest trailing P/E of around 11.5, with a forward P/E closer to 6 or 7. This suggests that the market is not overly optimistic about AI-driven growth here – or perhaps just values the company as a stable, mature software provider. It also offers a dividend yield of around 3.7%, reinforcing that it’s seen more as a steady income play than a speculative AI bet. Analyst sentiment is cautiously positive.
Kinaxis (KXS)
Kinaxis (KXS) is one of the Top AI Stocks Trading in Canada. Kinaxis, another Ottawa-based software firm, focuses on supply chain management solutions through its RapidResponse and Maestro platforms. With a market cap in the C$5–6 billion range, it serves large global customers managing complex logistics. Kinaxis is incorporating AI and machine learning to improve real-time decision-making across supply chains. From demand forecasting with Demand.AI to AI-based scheduling and anomaly detection, the company is betting on automation and analytics to differentiate itself from larger players.
Kinaxis trades at a premium valuation – with a forward P/E above 40 and a trailing P/E exceeding 400, reflecting its low net earnings as it reinvests for growth. While the growth story is strong and the use of AI is compelling, much of the optimism is already priced in. The stock is trading near its 52-week high, and while analysts lean bullish, the company will need to deliver consistent results to maintain momentum.
Constellation Software (CSU)
Constellation Software (CSU) is one of the Top AI Stocks Trading in Canada. Toronto-based Constellation Software operates a decentralized empire of niche software companies. With a market cap above C$100 billion, it’s among Canada’s most valuable tech firms. Its acquisition-driven model has been remarkably successful over the last decade, emphasizing long-term ownership and operational autonomy across its portfolio. Constellation doesn’t market itself as an AI leader, and its strategy isn’t focused on developing AI products in-house. However, many of the businesses it acquires are embedding AI into their own platforms, enhancing vertical software offerings for specific industries such as healthcare, finance, and municipal services.
While Constellation doesn’t trumpet its AI credentials, its sprawling portfolio quietly absorbs and deploys AI capabilities at scale. Investors view it as a proven compounder rather than a flashy tech innovator, but that might be exactly why it continues to outperform.
Final Thoughts: Hype vs. Fundamentals
There’s no question that AI is reshaping how software is built and used. But not every company is going to ride this wave to outsized returns – and not every AI implementation will move the needle on earnings. Canadian tech firms like Shopify, Open Text, Kinaxis, and Constellation each reflect different shades of AI adoption, from headline-generating rollouts to subtle backend improvements.
For investors, the challenge isn’t just identifying which companies are “using AI” – it’s determining whether that use meaningfully improves business outcomes and is being priced appropriately in the stock. In many cases, AI is a tool, not a ticket to automatic growth.
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