You may need missed the primary leg of Nvidia (NASDAQ:NVDA)’s run, however the synthetic intelligence (AI) story nonetheless has room. The trick now entails selecting firms that earn regular money whereas the world builds smarter methods.
If you look past Nvidia inventory, examine the fundamentals: recurring income, pricing energy, and money circulation that administration can reinvest. And as all the time, respect valuation, as paying an excessive amount of can crush returns even when the enterprise executes properly. So let’s take a look at two that would transfer your portfolio past Nvidia inventory.
NVDA
Nvidia inventory sells the computing engines that energy fashionable AI. It designs graphics processing models (GPU) and networking gear that sit inside hyperscale knowledge centres, and it pairs that {hardware} with a sticky software program ecosystem. That relevance nonetheless seems sturdy as a result of the largest tech platforms preserve spending on capability, and Nvidia inventory retains delivery the components that make these builds work. During the last 12 months, administration leaned onerous into its subsequent wave of methods, and the market handled each replace like a vacation.
Latest earnings put actual numbers behind the hype. Nvidia delivered income of US$57 billion in its third quarter of fiscal 2026. The corporate continues to anchor the buildout of coaching and inference, so the enterprise can preserve rising if cloud capital spending stays excessive and prospects preserve chasing efficiency per watt. The model additionally advantages from developer behavior. As soon as groups construct round a platform, switching hurts.
Now right here’s the rationale some traders might pause. Lots of optimism already sits contained in the share worth. A ahead P/E across the mid-20s can work, nevertheless it leaves much less room for stumbles. Any pause in orders, any tighter export rule, or any credible competitors can hit more durable when valuation runs scorching. Nvidia inventory can nonetheless win, however Canadians who purchase at the moment settle for the next price ticket and a thinner margin for error.
2 to think about
Lumine Group (TSXV:LMN) provides Canadians a quieter approach to trip the AI period. It owns vertical market software program companies that run important duties in particular industries, and it grows by shopping for extra of these area of interest instruments. That issues now as a result of firms need automation and higher choices in every single place, not simply in a chatbot. Lumine’s mannequin lets it plug into the “AI finances” via sensible software program that companies already want, then it provides new merchandise via acquisitions.
The newest numbers present a compounding enterprise in movement. Lumine reported income of US$549.4 million for the 9 months ended Sept. 30, 2025. It additionally reported free money circulation out there to shareholders of US$150 million over the identical interval. That money provides it gas for extra offers, which retains the flywheel spinning even when markets flip moody. The large threat comes from execution, as acquisitions drive a lot of the expansion.
Descartes Methods Group (TSX:DSG) provides one other Canadian possibility that advantages from the identical push towards smarter operations. It sells logistics and supply-chain software program that helps prospects transfer items, handle compliance, and scale back friction in delivery networks. Many firms spend on sensible automation lengthy earlier than they chase moonshot AI initiatives, and Descartes lives in that finances line. In its fiscal 2026 third quarter, it reported income of US$187.7 million and diluted earnings per share (EPS) of US$0.50. Buying and selling at 37 instances earnings, it goals for regular efficiency. A slowdown in world commerce can nonetheless cool outcomes.
Backside line
If you would like a easy motive Lumine and Descartes might seem like higher buys proper now, deal with expectations. Nvidia inventory carries the load of being the AI poster baby, so the market calls for fixed perfection. Lumine and Descartes can win via quieter execution, with recurring income, disciplined reinvestment, and regular compounding 12 months after 12 months. You continue to want endurance, and valuation nonetheless issues, however you do not want a single inventory to remain magical perpetually.
