The Nasdaq Composite fell 3.2% in July 2026, and fell 11% at one point in June, as investors grew increasingly worried about the massive artificial intelligence (AI) spending of mega-cap technology companies. Still, the AI boom created some of the most spectacular winners. Celestica, Canada’s acknowledged AI champion, was also among Wall Street’s hottest tech stocks.
Investors rushed mostly into chipmakers, developers of next-generation AI models, and data centre suppliers. However, Waterloo-based OpenText (TSX: OTEX) is hiding in plain sight but could be the next AI winner. This Canadian stock brings something increasingly important to enterprise AI: the data and information-management infrastructure.
Data underneath the models could soon receive more attention as the AI boom enters the next phase. OTEX trades at a discount so far in 2026, both on Wall Street (-26.7%) and the TSX (-24.7%). Opportunity knocks before the hype sets in.
Business overview
The $7.8 billion enterprise software company helps organizations manage, secure, and use their information. Its customer base includes businesses and governments that handle enormous volumes of documents, data, and digital content. OpenText started as an enterprise content management firm before its portfolio expanded into information management, cybersecurity, business networks, cloud services, and AI.
Enterprises are beginning to realize that AI is not just about smarter models. They also need to connect those models to trusted, relevant, and secure data. OpenText is well-positioned in this information layer. Its software can help better organize and govern the data that AI applications need to access.
OpenText isn’t competing with major tech giants on foundation models. Instead, it provides some of the information infrastructure enterprises need to put AI to work. This could become increasingly valuable as more companies adopt AI. Moreover, it could increase demand for OpenText’s software among its existing customers and attract new ones.
ReaI AI growth opportunity
Large enterprises are moving beyond experimenting with AI and deploying it across their operations. The AI opportunity for this Canadian stock is real and potentially huge. Companies will need AI systems to work with proprietary information, including customer records, financial documents, contracts, emails, and other business content. OpenText aims to meet this demand with software that organizes, secures, and governs information.
OpenText Aviator is designed to bring generative AI into business content and workflows. Instead of relying on general-purpose AI tools, customers can use AI within an enterprise information management (EIM) environment and their own business content. More importantly, OpenText emphasizes secure access to enterprise information. Organizations can keep sensitive data under their control when using AI for queries and searches.
A strong sales pitch and unusual benefit
Ayman Antoun, OpenText CEO, made the strong pitch for the Canadian stock. He said, “AI is creating urgency for every organization, but trusted data determines whether AI delivers value. OpenText is the secure data foundation in the AI stack. Enterprise-grade data is our differentiator, and it is how we will turn the AI opportunity into sustainable growth”
You derive an unusual benefit if you invest in OTEX today. The next AI winner pays a 4.84% dividend. This high yield, along with a low 42.6% payout ratio, compensates for the temporary weakness.