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Scotiabank Lowers BCE Price Target to C$39.50, Maintains Outperform

We recently published an article titled 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.

On February 6, Scotiabank lowered its price target on BCE Inc. (NYSE:BCE) to C$39.50 from C$40.25 while maintaining an Outperform rating, indicating that despite modest valuation adjustments, the firm continues to view the risk-reward profile favorably.

During its third-quarter 2025 results conference call, BCE Inc. (NYSE:BCE) reported a 1.3% increase in total revenue, supported in part by the acquisition of Ziply Fiber, and adjusted EBITDA growth of 1.5%, resulting in a 10-basis-point margin expansion to 45.7%—the strongest margin performance in over three decades. The company highlighted accelerating momentum in AI-powered solutions, with related revenue increasing 34% year-over-year, largely driven by organic growth from Ateko and Bell Cyber. These developments underscore BCE’s strategic pivot toward higher-value digital and cybersecurity offerings while maintaining stable core telecom operations. The combination of modest top-line growth, margin expansion, and emerging AI-driven revenue streams supports improving cash flow durability and strengthens the long-term investment case.

Founded in 1983 and headquartered in Verdun, Quebec, BCE Inc. (NYSE:BCE) provides wireless, wireline, internet, streaming, and television services to residential, business, and wholesale customers across Canada through its Bell Communications and Technology Services and Bell Media segments.

While we acknowledge the potential of BCE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BCE and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 9 High Growth Canadian Stocks to Buy

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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