US services PMI at 56.8 in August 2026 shows companies are still spending heavily on software, cloud and data projects. That demand increasingly runs through artificial intelligence, from language models like ChatGPT to the chips that power them. This creates a runway of potential for AI stocks. This article walks through 3 opportunities from our AI Stocks screener and what sets each apart.

The three stocks covered below are only a small sample, and the full AI screen surfaced 677 more companies with equally compelling stories linked to the ChatGPT and broader artificial intelligence trend that are not covered here. If you want to move beyond the shortlist and actively identify your own AI front runners, head straight to the Artificial Intelligence/ AI Stocks screener to filter, analyze and focus on the highest conviction opportunities that fit your approach.

Broadcom (AVGO)

Overview: Broadcom is a large US technology company that supplies high performance chips and networking hardware that move data around modern data centers, including AI workloads. It also sells infrastructure software such as VMware’s private cloud and security products. For AI and ChatGPT style systems, Broadcom’s Ethernet switches, NICs, PCIe switches, fiber-optic links and custom silicon help build the clusters that train and run large language models, while its software supports private and enterprise cloud deployments.

Operations: Broadcom generates about US$47.8b from Semiconductor Solutions, including intellectual property licensing, and about US$27.7b from Infrastructure Software.

Market Cap: US$1.75t

Investors watching the AI build out may want to pay attention to Broadcom because it supplies the networking chips and custom silicon that help hyperscalers connect huge clusters for AI training, not just the accelerators themselves. The company pairs this with a sizeable infrastructure software business from VMware, which can support private AI and multi cloud setups and adds diversification. High profit margins and strong free cash flow give Broadcom room to keep investing and service its sizeable debt load, although that leverage is a key risk if AI capex slows. Long term contracts with major cloud and AI customers add visibility, but current expectations are high, so the focus is on whether Broadcom can keep turning that AI demand into durable cash flows.

Broadcom’s AI cash flows and VMware software mix could be masking key pressure points and upside optionality in plain sight. Before you assume the story is fully priced in, study the 4 key rewards and 2 important warning signs

Baidu (BIDU)

Overview: Baidu is a leading Chinese internet company whose search, content and video platforms are increasingly tied to its ERNIE Bot large language model and Baidu AI Cloud, which offer conversational AI, generative AI tools and enterprise AI APIs. Alongside these AI services, Baidu also runs iQIYI, an online video and entertainment platform, and operates products such as Baidu Maps, DuerOS smart assistants and the Apollo Go robotaxi service.

Operations: Baidu generates all of its reported revenue, totaling approximately CN¥127.3b, from the People’s Republic of China.

Market Cap: US$31.6b

Investors looking at Baidu are really weighing how valuable ERNIE Bot and Baidu AI Cloud could become as AI usage scales across Chinese enterprises, while the older ad driven search business and iQIYI adjust to weaker advertising conditions. AI Cloud Infrastructure and GPU cloud services are already seeing strong momentum. At the same time, Baidu is currently unprofitable and management highlights pressure on margins, free cash flow and the timing of any payback on AI investments. Regulatory and competitive risks in China and overseas are also important considerations. If Baidu can turn its AI stack into high margin subscription and project revenue at scale, the business mix could look very different from the traditional search story that many investors still focus on today.

Baidu’s ERNIE Bot and AI Cloud story is still taking shape, and the real question is how quickly that AI spend could reshape the business mix. Get the analyst forecasts for Baidu before the market fully joins the dots.

Cerebras Systems (CBRS)

Overview: Cerebras Systems is an AI infrastructure company that builds wafer scale engine compute platforms and software specifically to run and train large language models and other generative AI workloads at very high speed. Its WSE based racks are designed for data centers that power ChatGPT style services for hyperscalers, foundation model labs and enterprises.

Operations: Cerebras generates around US$680.7 million of revenue from semiconductors, with sales spread mainly across the United States and the Europe, Middle East and Africa region.

Market Cap: US$46.6b

Investors looking for direct exposure to AI infrastructure may want to pay attention to Cerebras Systems because its wafer scale WSE platforms and new CS 4 racks are built specifically to accelerate LLM and generative AI inference, including OpenAI’s latest GPT 5.6 Sol Ultrafast tier. A large contracted backlog tied to OpenAI and AWS creates visibility on demand. However, this also introduces customer concentration and funding risks as Cerebras scales capacity for rented systems and cloud services. The company is still loss making and relies on higher risk external funding, which makes execution on margins and cash flow crucial. For investors willing to handle volatility, Cerebras offers a focused way to gain exposure to fast token generation and low latency AI workloads as they move into production.

Cerebras Systems could be the pure play on accelerating AI inference that many investors are still overlooking, with its wafer scale focus creating both edge and fragility. Go through the 3 key rewards and 2 important warning signs (1 is major!)

Seeking Fresh Alternatives Before They Fly

Fresh ideas often move first while slow research gets caught behind the breakout. Consider using momentum while it matters. Before these picks stop flying under the radar, review the opportunities that may fit your strategy.

• Identify income workhorses designed to keep paying by scanning the 12 dividend fortresses to see which yields may still look compelling before the broader market focuses on them.
• Explore quality compounders early by reviewing the 18 high quality undiscovered gems, which highlight under the radar businesses with fundamentals many investors may not have fully considered yet.
• Focus on durability before volatility changes by using the 75 resilient stocks with low risk scores to see which companies carry lower risk scores while prices may not have fully adjusted.

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.