Yahoo Finance 1 AI Stock That Can Help Turbocharge Your TFSA
Written by Joey Frenette at The Motley Fool Canada
It’s so hard to avoid the endless news and chatter about generative artificial intelligence (AI) and how it’s going to change the world forever. Undoubtedly, some of the incredible innovations in the realm of AI have been very impressive. As the technology continues getting better, some folks in the labour market may begin to perceive the threat (could AI-driven job displacement really be a thing?) of the latest and greatest AI-powered applications and tools.
The large language models (or LLMs, for short) are the generative AI chatbots that we’ve grown most accustomed to over the past year or so. They’re incredibly useful for a wide range of tasks (like cooking or simply asking a question).
Sure, it’s annoying to have yet another subscription to worry about in an inflation-rattled economy that’s not exactly firing on all cylinders. Still, I believe that the AI revolution is real and that another AI subscription can pay itself off in the form of cost savings and productivity. In any case, investors shouldn’t dismiss the past-year boom in all things AI as a bubble or the start of a bubble.
Does that mean AI stocks can’t plunge by 30%, 50%, or even 70% from their peak values?
Of course not! Some of the more overvalued plays in the AI scene could easily take a beating. But even if they take a big hit, that doesn’t mean the entire tech sector has to go down. Arguably, there are plenty of hidden gem AI stocks that I believe could outrun the AI stocks that have been hogging the headlines (and television shows) over the past 16 months or so!
In this piece, we’ll look at two AI stocks that I think may be able to turbocharge your Tax-Free Savings Account, Registered Retirement Savings Plan, or non-registered account portfolios. So, if you’re looking to bet on AI rather than overweighting in cash, perhaps the following two plays are worth considering, even as the broader AI trade continues heating up from here.
Shopify stock: A growth play that has some serious AI talent
Without further ado, consider Canadian digital retail kingpin Shopify (TSX:SHOP), which I view as turning into an AI-driven e-commerce company with every intriguing generative AI tool it launches. In prior pieces, I’ve praised the company for its various AI tools that aim to make merchants’ lives easier. Running an online store is hard, so every bit of help that AI can give is sure to be appreciated.
At this pace, I think Shopify could easily charge higher prices if it were to add more value (via AI-powered enhancements) for its customers. And with the means to potentially pursue smaller AI startups in the near future, I’d not rule out a few intriguing deals (perhaps over the next two or three years) as the firm looks to level up its game in the so-called AI race.
In any case, I think the AI thesis is undervalued by Wall and Bay Street right now, especially after the stock’s modest pullback toward $101 per share. As SHOP is now down over 17% from its 52-week highs, I view the stock as a terrific buy-the-dip play for AI investors who want to invest in what I consider to be Canada’s best large-cap tech firms.
The post 1 AI Stock That Can Help Turbocharge Your TFSA appeared first on The Motley Fool Canada.
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More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
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Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.
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