3 Canadian AI Stocks To Watch With Up To 65% Fair Value Upside

AI linked stocks led the latest market rally in the U.S., reminding investors how quickly sentiment can swing toward anything tied to artificial intelligence. Canadian AI related businesses sit in the same global conversation, yet some still trade as if this shift barely matters. That gap creates potential opportunity. This article walks through three stocks from a Canadian AI value screen that merit a closer look.

The three Canadian AI stocks below are a small sample from a broader screen, which surfaced 1 more business with a similarly compelling ChatGPT and AI driven story that is not covered here.

If you want to move beyond this short list and zero in on your own high conviction ideas, head straight to the Undervalued Artificial Intelligence/ AI Stocks screener to identify, filter, and analyze undervalued AI opportunities across semiconductors, software, LLMs, and cloud infrastructure.

Docebo (TSX:DCBO)

Docebo is a Toronto based learning software provider that leans heavily on AI, using tools like Harmony Search and its Advanced Analytics Pack to make corporate training more personalized and data driven.

Docebo generates about US$258.9 million from educational software, built around its cloud based learning platform, content marketplace, and AI supported tools such as Creator. The stock carries a market value of roughly CA$806 million.

"Rapid adoption of AI-driven features such as Harmony and Creati is positioning Docebo as an innovation leader, enabling enhanced personalization, automation, and productivity for customers; this supports long-term customer retention, upsell opportunities, and gross margin expansion."

What really matters now is how one quiet shift in customer willingness to pay for these AI layers ultimately feeds through to those margin ambitions.

If that pricing shift is what really moves the needle, read the full narrative for Docebo to see how Docebo’s AI adoption, contracts, and risks all connect.

Kinaxis (TSX:KXS)

Kinaxis leans into the AI supply chain theme through its Maestro platform, which uses AI agents to help global manufacturers manage complex planning problems that are hard to solve with traditional software.

Kinaxis runs a single, focused business that generates about $603 million from designing, developing, marketing, and selling its cloud-based supply chain management software and related services, and the stock has a market value near CA$4.8b.

"The rapid evolution and integration of AI and generative/agentic AI features within Kinaxis's Maestro platform, including partnerships like Databricks, is expected to drive new product differentiation, incremental expansion revenue, and higher win rates, positively impacting recurring revenue and potential pricing power."

What happens if one quiet shift in how large customers value this kind of AI driven orchestration changes the headroom for pricing and margins?

That kind of pricing reset is exactly what sits beneath the full narrative for Kinaxis, where the full story weighs how Maestro, contracts, and risk could reshape Kinaxis’s long term earnings power.

Thinkific Labs (TSX:THNC)

Thinkific Labs runs a cloud-based learning commerce platform that blends online courses, communities, commerce tools, and AI features such as content generation and personalization. It generated about $74 million from this single segment and has a market value near CA$82 million.

Thinkific Labs taps directly into the AI education theme, giving course creators tools that use generative technologies to build, personalize, and sell digital learning products more efficiently.

"Deep integration of artificial intelligence into both customer-facing features and internal operations is accelerating product development and enabling personalized, data-driven learning experiences, supporting product differentiation and enhancing customer retention, which is positive for recurring revenue and net margins."

What could significantly change the story is how one pressure point in this AI driven model reshapes the opportunity for better margins over time.

That margin pressure point is where the real story starts, and the full narrative for Thinkific Labs unpacks how Thinkific Labs could turn deeper AI adoption into accelerating operating leverage.

Seeking Alternatives Before Momentum Flies

Fresh opportunities move fast. By the time most investors notice a breakout, the best entry points can be gone. Scan these under the radar ideas while it matters and consider acting while conditions still align with your approach.

• Target resilient compounding potential by checking the 8 resilient stocks with low risk scores, which filters for balance sheet strength and lower volatility before the crowd fully catches on.
• Hunt for overlooked growth stories with the 9 high quality undiscovered gems, where under followed businesses with solid fundamentals stay under the radar for now but might not for long.
• Review structural shifts in automation using the 95 robotics and automation stocks, featuring carefully vetted operators that could gain momentum as demand for smarter infrastructure continues to develop.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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