NVIDIA (NASDAQ:NVDA) is well the trendiest inventory of 2024. Up 89% for the yr, it has outperformed even its fellow AI shares, that are performing nicely as a bunch. NVIDIA’s principal declare to fame is being the first semiconductor (“chip”) vendor to the bogus intelligence (AI) trade. It has a de-facto monopoly on AI accelerator chips – chips utilized in AI servers to deal with duties that the central processing unit (CPU) can’t deal with. Different firms are constructing AI chips, however they’ll’t deal with the identical workloads that NVIDIA graphics processing models (GPUs) can. For that reason, NVIDIA is both a monopoly or very near it. On the similar time, the U.S. authorities is closely prioritizing laptop chips, wanting to realize an edge over China. So, NVIDIA doesn’t face the same old antitrust scrutiny that monopolies do – it’s simply too essential to its dwelling nation geopolitically.

NVIDIA is definitely spectacular, however nothing deserves an infinite value. At this level, NVIDIA’s market capitalization (worth of all shares mixed) is 40% greater than that of Alphabet regardless of it having 60% much less revenue. It’s doable that NVIDIA is overvalued. Wall Avenue doesn’t appear to suppose so: its value goal is above the present value. Nonetheless that focus on ($975) is just 6.6% greater than the value which prevailed on the time of this writing. With that in thoughts, listed here are two Canadian AI shares that Wall Avenue likes higher than NVIDIA.

Kinaxis

Kinaxis Inc (TSX:KXS) is a Canadian tech firm that develops provide chain administration software program. It traded for $153.80 on the time of this writing, whereas having a $199 value goal from Wall Avenue. Thus, it has 29.3% anticipated upside in comparison with NVIDIA’s 6.6%. If Wall Avenue is true, then you’ll earn more money by shopping for KXS than by shopping for NVDA.

Why is KXS so well-liked on Wall Avenue? Like many tech firms, it’s getting a number of consideration due to its investments in generative AI. KXS builds software program that helps individuals monitor key provide chain parts like stock, uncooked inputs and buyer shopping for patterns. Kinaxis has at all times had options that lets customers monitor such issues (e.g., RapidResponse), however now with AI, gathering provide chain insights is a sooner course of than earlier than. For instance, in simply seconds, a person can predict how a lot stock he/she might want to fulfill buyer demand on a given day.

Shopify

Shopify Inc (TSX:SHOP) is a Canadian e-commerce platform firm. It develops an internet site builder and fee platform that assist companies run their very own on-line shops. The corporate is one in all Canada’s hottest progress shares. It has risen 2,895% since its IPO in 2015. In that point, it has grown to change into one of many world’s largest e-commerce gamers. Shopify inventory at the moment trades for US$79 on the NYSE and has a US$111 value goal from Wall Avenue analysts. The US$111 value goal interprets to $147. Shopify is $107.68 on the TSX on the time of this writing. So, Wall Avenue thinks that SHOP has 37.4% upside – which is healthier than NVIDIA’s estimated 6.6%.