Artificial intelligence is moving from buzzword to everyday tool, just as central banks, inflation readings, and bond markets reset expectations for the cost of capital. With attention on everything from US labor data to energy prices and eurozone inflation, many investors are looking for companies directly tied to the ChatGPT and AI build out, including semiconductors, cloud and software. This AI Stocks screener focuses on businesses at the core of that shift, from chips to large language models. Below, the article highlights 3 stocks from the screener that stand out for closer research.

Monolithic Power Systems (MPWR)

Overview: Monolithic Power Systems designs and sells semiconductor power management chips that help control and convert electricity inside everything from AI data center servers and cloud infrastructure to cars, consumer devices, industrial equipment, and communications systems across global markets.

Operations: Monolithic Power Systems generates US$3.0b in revenue from semiconductors, with a large share tied to customers in China (US$1.6b) and meaningful contributions from Taiwan, South Korea, Southeast Asia, Europe, Japan, and the United States.

Market Cap: US$67.9b

Investors looking at AI infrastructure often stop at GPUs and overlook power management specialists like Monolithic Power Systems, which sits closer to the heart of AI servers, high performance computing, and next generation automotive platforms. The company is tied to themes such as AI data center build outs and higher semiconductor content in electric vehicles, while analysts expect solid earnings and revenue growth alongside a high forecast ROE. At the same time, a very rich P/E multiple, sharp margin compression, insider selling, and reliance on external funding are reminders that expectations are already demanding. The real question is whether Monolithic Power Systems can grow into its valuation and sustain its momentum across end markets before sentiment cools.

Monolithic Power Systems sits at the crossroads of AI build outs and premium valuation, and the missing piece is how expectations line up with the 2 key rewards and 2 important warning signs

Five9 (FIVN)

Overview: Five9 provides cloud contact center software that uses AI agents and automation to help businesses handle customer interactions across phone, chat, email, social media, and mobile, while integrating in real time with tools like CRM systems to give agents relevant data and context.

Operations: Five9 generates about US$1.17b in revenue from internet software and services, with roughly US$1.04b from the United States and US$134.8m from international markets.

Market Cap: US$1.6b

Five9 operates at the intersection of AI and customer experience. Its Voice AI Agents, CX platform, and partnerships with Salesforce, Google Cloud, ServiceNow, and others help larger clients automate more complex support and sales work. Investors get a business that is already profitable, with recurring SaaS revenue, and a Simply Wall St DCF and analyst targets that indicate potential upside if the underlying assumptions are met. At the same time, leadership changes, insider selling, reliance on external borrowing, and competition from larger software providers mean execution risk is a key consideration, particularly if AI products do not differentiate effectively or if regulation increases costs.

Five9’s recurring SaaS revenue and AI tools might be obscuring a more important story about how profits and borrowing risk intersect, so it is worth reading the analysis report for Five9

Cerebras Systems (CBRS)

Overview: Cerebras Systems builds and sells an AI compute platform centered on its wafer scale engine, a single massive chip and software stack designed to run inference, generative AI and other AI workloads at high speed for data centers and supercomputer scale deployments used by hyperscalers, model labs and enterprises.

Operations: Cerebras Systems generates US$603.9m in revenue from semiconductors, largely split between Europe, the Middle East and Africa at US$420.8m and the United States at US$182.8m.

Market Cap: US$50.1b

Cerebras Systems sits at the center of AI infrastructure with its wafer scale engine targeting fast inference for customers such as OpenAI and AWS. It is backed by a large multi year backlog and analyst forecasts for rapid earnings and revenue growth. At the same time, the stock carries meaningful red flags including negative equity, reliance on external borrowing, significant insider selling and large one off gains that complicate the recent move into profitability. These factors come alongside a very rich valuation and a highly volatile share price. For investors who can tolerate swings, the combination of high growth expectations, a differentiated hardware approach and heavy concentration and funding risks makes Cerebras Systems a stock that warrants closer, more detailed work before taking a position.

Cerebras Systems appears to be a pure AI infrastructure momentum play, yet its backlog, wafer scale engine and funding trade offs are tightly linked to how the 4 key rewards and 3 important warning signs (1 is major!) could reshape the whole story.

The three stocks in this article are only a starting point. The full Simply Wall St screener surfaced more than 200 additional companies tied to the ChatGPT and AI build out, each with its own potential narrative and risk profile, in the Artificial Intelligence/ AI Stocks screener. Identify and analyze the AI stocks that best fit your view by filtering for the specific catalysts, financial traits and business stories that matter most to you so you can focus on your highest conviction ideas.

Take Control of Your Investment Journey

If Five9 or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before Others?

Markets move fast, and fresh stock ideas can shift from quiet accumulation to breakout momentum before most investors notice. Spot what is still under the radar for now and get in early.

• Spot cash generative compounders early by scanning a curated 41 high quality undervalued stocks that filters for quality businesses with earnings power and balance sheets many investors have not fully priced in yet.
• Zero in on future-defining infrastructure by tapping into a hand picked 53 AI infrastructure stocks that highlights companies supplying the hardware and backbone behind rising data and compute demand.
• Pursue resilient income streams while others chase headlines by reviewing a focused 8 dividend fortresses built around companies with higher yields and balance sheets that aim to support ongoing payouts.

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.