KXS:CC - The Top AI Stock to Buy in 2024
2023-12-27 16:30:00 ET
Ever since the tech sector saw a complete meltdown due to market volatility caused by a litany of industry headwinds, investing in technology stocks has taken a back seat for many Canadian investors. However, the surge of artificial intelligence (AI) and its major role across all sectors of the economy has reshaped the general perspective.
As the rapidly growing AI market keeps gaining momentum, investors who completely lost interest in high-growth stocks have more reasons to be hopeful about allocating at least some money to the tech sector. It is clear that AI is not a fad, and AI stocks are slated to do better than others in the stock market in the coming year and beyond.
Today, I will go over my top AI stock picks trading on the TSX right now. This is a company that has been involved with AI for quite some time now, incorporating the technology into its core business to unleash more growth opportunities. Taking a closer look at this AI stock can help you make an informed decision about whether it can be a good addition to your self-directed portfolio.
The winning AI and supply chain management combo
Kinaxis ( TSX:KXS ) is an Ottawa-based supply chain management and sales and operation planning software company. The $4.28 billion market capitalization company is an excellent example of how AI technology has diverse applications. The rise of data-driven, predictive AI can truly benefit the company that offers software-based solutions to clients worldwide.
Supply chain management is a job that AI can accomplish with greater efficiency, and Kinaxis has been busy innovating on that front. The AI-based RapidResponse cloud-based product offered by Kinaxis exemplifies the use of this technology to revolutionize supply chain management.
The capabilities this software provides include consequence evaluation and alerting, responsibility-based collaboration, high-speed analytics, and scenario simulation.
In simpler words, Kinaxis’s software solution allows its client companies to identify and respond to any shipment issues with greater efficiency by relying on AI to perform a lot of the processing legwork for them. Through its innovative capabilities, Kinaxis has remained a strong partner for its enterprise-level customers, despite significant global supply chain disruptions.
Foolish takeaway
As of this writing, Kinaxis stock is down by 21.53% from its 52-week high. As alarming as the figure might seem, analysts are bullish on the stock and expect a stellar performance in 2024 and beyond. Trading at a considerable discount from its all-time high, Kinaxis stock has plenty of room to grow before it recovers to a $200 price range.
While many other AI stocks still seem to be figuring out how to truly leverage the technology to their benefit, Kinaxis is clear in its goals, and it is apparent. The underlying business has a proper line of sight toward profitability.
It has introduced products that will help it continue improving its operations. So, among the AI stocks trading on the TSX, I believe that Kinaxis is certainly one of the top picks to consider adding to your self-directed portfolio to jump on the artificial intelligence bandwagon and grow your wealth.
The post The Top AI Stock to Buy in 2024 appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy .
2023