Investing in the future potential of artificial intelligence (AI) can come with both risks and rewards. When considering whether AI stocks are overvalued, it is important to take a long-term view, such as looking at a 10-year horizon. In past instances, like during the mobile revolution of 2008, a company like Apple surpassed market leaders like BlackBerry, despite being perceived as overvalued at the time. The success of Apple’s disruptive iPhone proved that technology can defy traditional fundamentals and market expectations. This demonstrates that even companies with limited experience can outperform industry giants by harnessing the power of technology.
Based on this perspective, there are two Canadian AI stocks worth considering that may not have reached the level of success as industry leader Nvidia, but hold promise for the future.
Telus International, a spin-off from a telecom operator, offers IT services and multilingual customer support to global clients. With its GenAI support tool, the company provides fast and intuitive responses to queries while upholding privacy standards. As governments introduce regulations on AI usage, companies like Telus International are focused on building AI solutions that adhere to ethical standards. Despite facing some challenges, the company’s commitment to improving AI use cases and learning from its experiences positions it well for growth. With its stock trading at a low point, it presents a potential buying opportunity for long-term investors.
Another Canadian company, Hive Digital Solutions, is not directly involved in AI but is exploring revenue opportunities through its Nvidia GPU-powered data center, which can handle high computing workloads. By expanding its computing power for activities like Bitcoin mining, Hive Digital Solutions could potentially offer AI data center services to emerging companies interested in AI adoption. While its cloud business currently contributes a small portion of revenue, the company’s long-term growth potential lies in its ability to scale and provide essential computing power for AI applications. Trading below $4 per share, Hive Digital Solutions stock may offer a compelling investment opportunity for those looking to capitalize on the future potential of AI and blockchain technologies.
