Global bond yields are climbing as inflation expectations stay firm and central banks keep policy tight for longer. That backdrop often pushes investors toward companies with steady cash generation that still trade below what detailed cash flow models suggest they are worth. This article highlights three stocks from the Undervalued Stocks Based On Cash Flows screener that could interest value focused investors who are looking for cash flow support and a margin of safety.

The stocks covered below are just a small sample from this idea, and the full screen surfaced 139 more companies with similarly compelling cash flow stories that are not included here. If you want to identify and analyze potential high conviction opportunities straight away, head into the Undervalued Stocks Based On Cash Flows screener.

Cerebras Systems (CBRS)

Overview: Cerebras Systems is an AI infrastructure company that designs and manufactures a wafer scale AI compute platform, packing an entire silicon wafer into a single chip to run demanding inference and generative AI workloads at very high speed. Its rack based systems and software are deployed in data centers for customers such as hyperscalers, foundation model labs, enterprises, and Sovereign AI projects across the US and other international regions.

Operations: Cerebras Systems currently generates all of its US$680.7 million in revenue from semiconductors, with around US$443.5 million coming from Europe, the Middle East and Africa and US$236.6 million from the United States.

Market Cap: US$52.0b

Investors looking at Cerebras Systems are getting exposure to a purpose built AI inference platform that sits behind high profile partnerships with OpenAI, AWS and AMD, underpinned by a reported US$25.4b backlog that provides a degree of revenue visibility for a hardware stock. The share price recently reacted to margin pressure and heavy capacity expansion. Analysts have published expectations of earnings and revenue growth and some see upside compared with both target prices and a discounted cash flow estimate. At the same time, the company is still loss making with return on equity in the red, is funding its build out with external borrowing, and has seen insider selling and sharp share price swings. That mix of potential growth drivers and execution risk may make Cerebras worth a closer look for cash flow focused investors.

Capacity expansion, a US$25.4b backlog and high‑profile AI partnerships give Cerebras Systems a powerful story, but the real twist may sit inside the 3 key rewards and 2 important warning signs (1 is major!)

Build your own AI cash flow shortlist

Cerebras Systems and the other two stocks in this article all came out of a single Simply Wall St screener, but the real opportunity is in creating filters that fit your own playbook. Use our flexible Screener to mix valuation, future growth, balance sheet and risk filters, or start with any of our curated Investing Ideas.

Super Micro Computer (SMCI)

Overview: Super Micro Computer builds high performance servers, storage systems, and full rack level AI data center solutions that are used by cloud providers, enterprises, and governments to run compute intensive workloads such as artificial intelligence, analytics, 5G, and edge computing across the US and international markets.

Operations: Super Micro Computer currently generates all of its US$39.1b in revenue from developing and providing high performance server solutions.

Market Cap: US$25.8b

Investors watching the AI infrastructure build out are paying close attention to Super Micro Computer because it sits at the center of record demand for GPU rich servers, with a reported backlog above US$60b and management guidance for fiscal 2027 revenue between US$65b and US$72b. Earnings growth over the past year was very strong and revenue forecasts remain above broader market expectations. However, the stock trades on a relatively low P/E and below an internally modeled cash flow value, while dependence on a handful of very large customers, possible hardware price pressure, high non cash earnings, and ongoing regulatory investigations mean future margins and cash conversion are uncertain.

Super Micro Computer sits at the junction of strong AI server demand and a relatively low P/E, yet the full story is not in the headlines. Get the full context in the 4 key rewards and 2 important warning signs (2 are major!)

Nu Holdings (NU)

Overview: Nu Holdings is a digital bank that offers app based accounts, cards, payments, lending, investing and insurance across Brazil, Mexico, Colombia and beyond, aiming to replace traditional high fee branch banking with a low cost mobile platform. Its ecosystem ranges from everyday spending and savings tools to credit, crypto, travel and even mobile phone services, all delivered inside the Nu app.

Market Cap: US$73.6b

Nu Holdings may appeal to investors who want exposure to a large scale fintech that is already profitable and expanding. The company reports net income, return on equity and net interest margins that benefit from a low cost digital model and a customer base of around 139 million people. At the same time, bad loans sit at 8.6% and the management team is relatively new, which adds credit and execution risk. Recent full banking licenses in Mexico and Brazil, along with AI tools that shape underwriting and customer service, are additional factors for investors to consider when weighing potential opportunities against the risks.

Nu Holdings is scaling a 139 million customer fintech platform with full banking licenses and AI driven underwriting, yet the real tension between growth and credit risk sits inside the 4 key rewards and 1 important warning sign

Seeking Fresh Alternatives Before They Fly

New ideas can move quickly and the most attractive entry points may not last long. Scan fresh breakouts and under the radar stocks before momentum is fully recognized and prices begin to shift.

• Spot companies with strong income engines before they gain wider attention by reviewing the curated 10 dividend fortresses.
• Focus on real earnings momentum in AI by reviewing the hand picked 75 profitable AI stocks that aren't just burning cash that already convert demand into cash rather than just headlines.
• Explore resilient compounders that may hold up when sentiment changes by concentrating on a carefully filtered 80 resilient stocks with low risk scores.

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.