Central banks are watching services sector data closely as rising input costs keep inflation pressures alive. That keeps capital more expensive and makes productivity the focus. Artificial intelligence stocks sit right at that crossroads, helping companies do more with every dollar spent. This article walks through three AI stocks from the ChatGPT and AI screener that show how different parts of the AI chain may benefit from that push.

The three stocks in this article are just a sample from the wider AI opportunity set, and the full screen surfaced 203 more companies with equally compelling narratives that are not covered here. To go straight to the source and identify your own highest conviction ideas, analyze the Artificial Intelligence/ AI Stocks screener.

ON Semiconductor (ON)

Overview: ON Semiconductor is a US based chip company that focuses on intelligent power management and sensing, supplying components that help electric vehicles, factories, AI data centers, and robotics run more efficiently and safely.

Market Cap: US$29.9b

ON Semiconductor operates in key parts of the AI infrastructure build out, supplying power and sensing chips into areas such as EVs and AI data centers, where recent Q2 2026 results showed revenue of US$1.60b and record free cash flow margins. Analysts expect strong earnings growth and higher returns on equity over the next few years, helped by portfolio pruning, the Fab Right cost program, and expanding silicon carbide production. The flip side is meaningful exposure to cyclical auto demand, manufacturing underutilization that still weighs on margins, and competition in EV and image sensing markets. For investors evaluating AI-related suppliers with scale, improving profitability, and capital return via buybacks, ON Semiconductor may warrant further research.

ON Semiconductor's push into AI infrastructure and record free cash flow margins has many investors focused on the upside, while underestimating the trade off with auto cyclicality and underutilized fabs. To see how that balance between opportunity and pressure really stacks up, review the 3 key rewards and 2 important warning signs

Build your own AI infrastructure shortlist

ON Semiconductor and the other two stocks in this article all surfaced from our screener, but the real edge comes from setting filters that match your own rules. Use our flexible Screener to mix valuation, growth, quality and risk criteria into your own watchlist, or start with any of our curated Investing Ideas.

Lattice Semiconductor (LSCC)

Overview: Lattice Semiconductor makes low power field programmable gate arrays, or FPGAs, and related software that help customers customize chips for AI at the edge, data centers, industrial automation, and automotive systems. Its platforms like Nexus, Avant and sensAI are used to add flexible computing, vision, security and control features into a wide range of connected devices without designing a chip from scratch.

Market Cap: US$19.6b

Lattice Semiconductor may appeal to investors seeking exposure to AI and edge computing without concentrating on a single accelerator chip. The company is positioning itself as a companion chip supplier for AI data centers and connected devices, with newer FPGA platforms and software expected to account for a larger share of revenue and influence margins. The AMI acquisition and partnerships such as ASPEED indicate a broader role in managing and securing AI infrastructure, while recent guidance points to demand levels and a larger addressable market. At the same time, high expectations, richer valuation multiples, stronger competition and increasing spend on R&D mean investors may need to balance growth opportunities against potential pressure on returns and earnings quality.

Lattice Semiconductor is leaning into the AI and edge computing story, while richer valuation multiples and rising R&D spend quietly reshape the risk reward mix. Get the full picture in the 2 key rewards and 1 important warning sign

Dynatrace (DT)

Overview: Dynatrace runs an AI powered observability platform that helps large organizations monitor, secure, and automate their digital systems across cloud infrastructure, applications, logs, and user experience, with services and training layered on top for sectors such as banking, government, retail, and software.

Market Cap: US$13.27b

Dynatrace gives investors exposure to AI workloads at the software layer, where recurring revenue, strong gross margins, and growing ARR are central. Its Grail log platform and AI observability tools are seeing rapid consumption, while a sharper go to market focus has supported double digit revenue and ARR growth and record new customer wins. At the same time, earnings recently fell sharply and net margins compressed to 7.2%, competitive pressure from hyperscalers is intense, and larger deal sizes mean more lumpiness and customer concentration risk. For investors who want to understand whether AI driven growth, potential buybacks, and projected ROE improvement can outweigh those execution and valuation questions, Dynatrace deserves a closer look.

Dynatrace is seeing AI workloads surge while earnings and margins look out of sync. To explore what this mismatch might signal for future growth and resilience, review the analyst forecasts for Dynatrace.

Seeking Fresh Alternatives Before They Fly

New themes can break out fast and then momentum moves on. Scan these fresh stock ideas under the radar for now, before the crowd catches up and acts.

• Spot early movers in tiny companies with real balance sheet strength by scanning the curated 19 elite penny stocks with strong financials before the next wave of interest increases volumes.
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• Zero in on resilient businesses that aim to protect capital when markets drop by filtering through the curated 79 resilient stocks with low risk scores before defensive ideas become crowded.

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.