The Top 3 Canadian AI Stocks I’d Buy in 2026

I’m always on the search for top growth stocks to consider in any market. However, with the rise of artificial intelligence and other key technologies, it’s clear which direction the market is looking for growth.

Now, the narrative around certain AI stocks has soured. But with that said, I think there are some relatively overlooked opportunities in Canada worth considering.

Here are three of my top picks as ways to play the AI revolution I think investors shouldn’t be sleeping on right now.

Kinaxis

In the world of supply chain management software (a relatively boring space, historically), Kinaxis (TSX:KXS) has carved out a very profitable niche.

Some investors may have noticed that the company’s stock price hasn’t kept up with its growth ambitions. And that’s certainly been the case of late, with KXS stock losing nearly 50% of its value from its recent peak.

That’s because most AI stocks (and in particular, companies spending money on AI integrations like Kinaxis) are getting hit hard across the board. That said, the company’s model of layering machine learning into real-time forecasting and scenario simulations for volatile global ops could have major long-term value that I’m not ignoring.

Kinaxis’s recent Q3 results highlighted this trend, with record revenue of $134.6 million (up 11% year over year), Software as a Service revenue surging 17% to $92 million, and annual recurring revenue coming in at $407 million (17% growth). Those are the kinds of numbers that support a much more robust valuation than where this stock is trading right now.

Shopify

Another top growth stock I continue to pound the table on is e-commerce platform provider Shopify (TSX:SHOP).

Like the other names on this list, Shopify has had a rough go of it in recent weeks. While this stock is still trading much higher than its 2022 lows (due to a nice rebound tied to its fundamentals), there are a number of reasons why some investors are growing wary of investing in even the best blue-chip software-related names right now.

That said, think Shopify’s AI tools like Sidekick and Agentic commerce are supercharging e-commerce. These tools boost merchant onboarding and payments penetration, allowing Shopify to post incredible gross merchandise volume growth of 68% this past quarter, as well as free cash flow, which soared above $2 billion on 17% margins.

With those kinds of results, I’d suggest investors may want to take a look at this name, which is trading well below its historical average valuation seen over the past decade.

Fortis

Last, but certainly not least on this list, we have utility giant Fortis (TSX:FTS) as a top AI beneficiary (this time, one that’s on the uptrend).

Shares of Fortis stock have been ripping higher over the past year, as investors look for ways to tap into the growth of AI, but in a less-sensitive manner. Indeed, utility companies can’t easily be replaced by technology. Thus, the recently-coined “HALO” trade (standing for high assets, low obsolescence) is at play here.

Fortis’s surging fundamentals, driven by robust expected future demand for electricity, and an entrenched (loyal) and captive consumer base on both the residential and commercial side of the equation, are propelling this stock to new all-time highs.

I think this ride will continue for quite some time and won’t stop pounding the table on this name until and unless something drastic changes. For now, Fortis remains a top-three pick of mine for those looking to pick stocks in their portfolios.

The post The Top 3 Canadian AI Stocks I’d Buy in 2026 appeared first on The Motley Fool Canada.

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More reading

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• Canadian Investors: How You’re Paying Taxes to the IRS

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Fortis and Kinaxis. The Motley Fool has a disclosure policy.