The hype behind artificial intelligence (AI) is well-deserved and it’s no stretch to comprehend it. Large language models’ ability to analyze vast datasets and come to conclusions exponentially faster than human intellect permits is THE value-add of the 21st century, enhancing efficiency and productivity in every industry imaginable, with machine learning ramping up its pace of discovery as we speak.
This fervid adoption has the AI market on pace for 5x growth by 2031, offering investors a multi-trillion-dollar opportunity to participate in through strategic allocations, where strategy is synonymous with a focus on fundamentals capable of supporting a business once the hype wears off.
Supposing your portfolio’s technology sleeve is looking a little thin, I’ll try to see this thesis through, profiling a pair of AI stocks sitting on significant losses, despite tracking profitable businesses driven by innovations pushing their industries forward, suggesting undervaluation is in play.
ThreeD Capital
Our first AI stock, ThreeD Capital, market capitalization C$7.07 million, is a Canadian venture capital firm investing in and advising disruptive technology developers and junior resource miners across both public and private markets.
The firm’s resources division emphasizes precious metals and battery metals with a focus on district-scale pure-play projects. Acquisitions tend to be of the brownfield variety, meaning they were developed by a previous operator, offering ThreeD a 2-3-year path to commercialization.
TheeD’s technology division specializes in AI, machine learning, blockchain, IoT, esports and renewable energy, favoring early-stage entry points in companies expanding their industries’ value-creation potential.
The company’s portfolio as of March 31, 2025, was valued at C$36.2 million, including an insider position in AI/ML Innovations (CSE:AIML), which is deploying AI to process biometric data into clinical insights to expedite diagnosis, offer more personalized treatment and ultimately deliver more effective care, as well as a position in infinitii ai (CSE:IAI), which provides environmental monitoring and predictive analytics to many of North America’s largest water infrastructure utilities.
When we look back over the past five fiscal years, ThreeD Capital has been profitable on an overall basis, translating the volatility of its early-stage investments into net income of C$12.12 million, substantiating management’s capital allocation skills at a time of high inflation and rising market uncertainty stoked by war and economic deglobalization.
Despite the firm’s money-making ways, ThreeD Capital stock (CSE:IDK) has given back 73.21 per cent since 2020, opening the door for the company to deploy more than C$1 million in recently raised capital and build more leverage towards a potential re-valuation.
Docebo
Last in our pair of hype-worthy AI stocks is Docebo, market capitalization C$1.09 billion, whose AI-powered learning platform helps organizations across the world deliver content at a greater scale and on a more personalized basis to foster long-term growth. Notable clients include lululemon, Netflix and General Electric, among many other household names.
The company’s turnkey platform, covering training tied to compliance, customer experience, employee experience and talent development, allows companies to not only create fresh content but track its effectiveness using in-house and third-party AI tools, honing results along the way through the development of personalized learning paths based on how someone interacts with the software.
The appeal of more efficient learning at the enterprise level – namely, a heftier bottom line -has allowed Docebo to grow subscription revenue at a 36 per cent compound annual growth rate from about US$10 million in 2016 to US$220 million in 2024, while keeping profitability as its North Star, as evidenced by:
- Growing free cash flow from C$1.4 million in 2022 to C$32.2 million in 2024, with C$20.3 million collected through Q1 and Q2 2025.
- Positive net income over the past three fiscal years, earning US$7.02 million in 2022, US$2.84 million in 2023 and US$26.74 million in 2024, plus US$4.55 million in H1 2025.
Protected by cash-flowing operations, learning-enhancing technology, and a diversified customer base spanning software, IT, financial services, manufacturing, retail, healthcare, transportation and real estate, Docebo is well-positioned for long-term growth, with leadership actively executing on a multi-pronged strategy – as detailed on slide 18 of the Q2 2025 investor presentation – supported by investment in sales and marketing, research and development, as well as process improvements.
Much to the contrarian’s glee, the market does not share our enthusiasm, tanking Docebo stock (TSX:DCBO) by 40.51 per cent year-over-year and by 27.08 per cent since inception in 2019, failing to recognize the company’s growing role in helping some of the world’s top businesses find an edge over the competition.
Join the discussion: Find out what investors are saying about these AI value stocks on the ThreeD Capital Inc. and Docebo Inc. Bullboards, and make sure to explore the rest of Stockhouse’s stock forums and message boards.
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