Artificial intelligence stocks sit at the crossroads of powerful themes such as advanced chips, large language models like ChatGPT, and cloud based software. That combination is drawing attention as inflation, central bank policy and energy prices keep markets focused on productivity, efficiency and automation. The AI Stocks screener targets companies directly linked to this shift, from semiconductors to AI software and infrastructure. It helps you filter a crowded field into a focused watchlist. In this article you will see 3 stocks from this AI Stocks screener that many investors are watching right now.

Monolithic Power Systems (MPWR)

Overview: Monolithic Power Systems designs and sells power management chips that sit inside everything from AI data center servers and electric vehicles to consumer devices and industrial equipment, helping convert and control electricity efficiently across complex systems.

Operations: Monolithic Power Systems generates all of its US$3.0b revenue from semiconductors, with a large share coming from China at about US$1.6b and additional contributions from Taiwan, South Korea, Southeast Asia, Europe, Japan and the United States.

Market Cap: US$65.8b

Investors watching AI infrastructure tend to pay attention to Monolithic Power Systems because its power chips sit at the heart of high growth areas such as AI data centers and advanced automotive platforms. The company has been expanding capacity to support that demand. The business has a long run of strong earnings growth and analysts still expect double digit revenue and profit growth. However, the stock trades on a very rich P/E and a DCF value that sits well below the current price, which leaves little room for disappointment if margins or AI orders soften. That combination of strong positioning, high expectations and rising risks is what makes the story worth a closer look.

Monolithic Power Systems sits at the center of AI hardware and premium expectations, yet the real story sits in the 2 key rewards and 2 important warning signs that could explain whether this rich P/E is signalling resilience or something more fragile.

RingCentral (RNG)

Overview: RingCentral provides cloud based communication tools for businesses, combining AI powered voice, video, messaging, contact center and events into a single platform that helps teams and customer facing staff work and communicate more efficiently.

Operations: RingCentral generates about US$2.6b in revenue from internet software and services.

Market Cap: US$4.5b

RingCentral gives you exposure to AI in business communications, with products like RingCX, AI Receptionist and AI Agent Assist designed to automate customer interactions and give support teams real time guidance. Recent results showed earnings ahead of expectations, raised guidance and a 67% dividend increase, while ongoing buybacks indicate a focus on cash generation and shareholder returns. At the same time, the company carries high debt, has negative equity and faces competition from bundled suites such as Microsoft Teams and Zoom. For anyone assessing whether that mix of AI initiatives, leverage and partner reliance represents an opportunity or a potential value trap, it may be useful to look beyond headline growth figures and a high forecast ROE.

RingCentral sits at the intersection of AI tools, cash returns and heavy leverage, which many investors may be underestimating. Get the full story in the 3 key rewards and 4 important warning signs (1 is major!)

SAP (XTRA:SAP)

Overview: SAP is a global enterprise software company that helps large organisations run critical functions such as finance, supply chain, HR, procurement and customer operations, increasingly with AI embedded into its cloud based products.

Operations: SAP generates about €34.3b from Applications, Technology & Support and €3.9b from Core Services, with revenue spread across Germany, the United States and other EMEA, Americas and Asia Pacific Japan regions.

Market Cap: €182.6b

SAP attracts attention in AI focused screens because it sits at the core of how many global companies plan, transact and report, and is now weaving AI into that infrastructure through SAP Business AI, cloud ERP and a growing suite of assistants. Recent results highlight double digit cloud and total revenue growth, rising margins and an expanding AI product set, while the stock trades below some fair value estimates even with a P/E above European software peers. At the same time, higher leverage, ongoing restructuring, integration costs from acquisitions and a busy boardroom introduce execution risk. That tension between embedded customer reliance, AI led growth plans and a more stretched risk profile is where the investment debate around SAP really starts.

SAP’s AI plans, cloud shift and boardroom reshaping may be telling a different story to the headline P/E. Get the full context in the analysis report for SAP that hints at what could quietly change next.

The three artificial intelligence stocks in this article are only a starting point and the full Artificial Intelligence/ AI Stocks screener surfaces 667 more companies that carry equally compelling AI driven stories around chips, software, infrastructure and large language models like ChatGPT. Use Simply Wall St to identify, analyze and filter for the exact AI catalysts and narratives that matter to you so you can focus on the highest conviction opportunities across that broader set of companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.