In this article, we will discuss Why Can This AI Technology Stock in Canada Be the Best Investment?
If you want to avoid being whipsawed by daily market fluctuations, one of the smartest moves you can make is to invest in long-term, disruptive trends — and few are as promising as artificial intelligence (AI). With AI poised to transform entire industries, from enterprise software to cybersecurity and automation, the economic potential is massive, with trillions of dollars in value expected to be created in the years ahead.
For long-term investors, the key is identifying companies that are not just dabbling in AI, but embedding it deeply into revenue-generating, scalable platforms. One standout Canadian name in this space is Open Text (TSX:OTEX) — a company that could be among the top AI investments of the next decade.
Also Read: AI Tech Stocks in Canada
Open Text: At the Center of Enterprise AI Transformation
Open Text has positioned itself as a vital player in helping enterprises integrate AI across operations. Through its flagship Open Text Aviator platform, the company provides advanced AI-driven solutions in areas like content management, cloud services, analytics, and cybersecurity. Its focus is on enabling businesses to automate workflows, enhance digital security, and gain actionable insights from data in real time.
Currently trading around $38.90 per share, Open Text has a market capitalization just over $10 billion and offers a dividend yield of approximately 3.7%. While the stock has climbed roughly 8% in the past month, it remains about 18% below its 52-week high, presenting a potential buying opportunity for investors who believe in its long-term AI growth strategy.
Recent momentum in the stock has been driven by improving financials, particularly margins and cash flow. In its latest quarterly report (for the period ending March), Open Text generated US$402 million in operating cash flow and US$374 million in free cash flow, up 4% and 7% year-over-year, respectively.
Read Next: Best Canadian AI Stocks for 2025
Resilient Cloud Growth and AI-Driven Strategy
Despite a decline in total revenue — partly due to softer industry demand and the divestiture of a legacy systems business — Open Text continues to demonstrate the strength of its subscription-based cloud model. In fact, its cloud revenues have now grown for 17 consecutive quarters, underscoring the durability of this part of its business.
The company’s latest product release, Cloud Editions 25.2, integrates AI, hybrid cloud functionality, and cybersecurity into a unified, enterprise-grade platform. Alongside this, Open Text is pushing forward with a major operational efficiency plan, targeting up to US$550 million in annual savings through greater automation and AI integration.
With a clear focus on high-growth areas like Aviator AI, digital content services, and next-generation cybersecurity, Open Text is realigning its business for the AI-driven future. These strategic moves are expected not only to enhance profitability but also to unlock new growth opportunities.
Why Open Text Stands Out
Open Text is doing exactly what’s needed to remain competitive — and relevant — in a future where AI becomes foundational to business operations. Its strong cash flow, recurring revenue streams, and targeted AI investments make it a compelling candidate for long-term investors.
For those seeking to ride the wave of digital transformation through a Canadian tech stock, Open Text could very well be one of the most promising investments of the next ten years.
Sign Up For our Newsletters to get latest updates
