AI has moved from headline story to stock selector, and investors are now sorting through which companies may truly benefit from the next phase of automation. While recent trading around AI has been choppy, attention is starting to shift toward large industrial groups that help build and run the systems behind the scenes. This article looks at 3 stocks exposed to the latest AI driven news, all drawn from an Industrial Automation Leaders screener, to help you think through where enthusiasm might be justified, where caution could be wise, and how these businesses might fit alongside a diversified portfolio.

SKS Technologies Group (ASX:SKS)

Overview: SKS Technologies Group designs, supplies, and installs audio visual, electrical, and communications systems across Australia, from smart boardrooms and stadium screens to data and voice networks, serving architects, builders, and consultants that need complex digital infrastructure to work reliably together.

Operations: SKS Technologies Group generates A$277.5 million in revenue almost entirely from lighting and audio visual markets within Australia.

Market Cap: A$981.4 million

Investors looking for AI infrastructure exposure without buying pure software stocks may find SKS Technologies Group interesting, because it sits where smart buildings, data centers, and automation projects are delivered in practice. Reported earnings growth, a high reported ROE of around 61%, and a work-in-hand pipeline illustrate current execution. An elevated P/E ratio and reliance on a few large data center contracts, however, highlight the need to monitor contract concentration and funding risks. With earnings forecast to grow faster than the broader Australian market and an upcoming FY26 result on August 18, 2026, the next set of financial results could be relevant for investors assessing whether current expectations reflect the company’s position in the AI automation theme.

SKS Technologies Group’s high reported ROE and AI project exposure suggest something is shifting in the business model, but the real story sits inside the analysis report for SKS Technologies Group

SRG Global (ASX:SRG)

Overview: SRG Global is an engineering and asset maintenance contractor that keeps critical infrastructure, mines, industrial plants, and large buildings operating safely and efficiently across Australia and New Zealand, while also supplying specialist construction, ground engineering, and facade solutions.

Operations: SRG Global generates about A$983.7 million from Maintenance and Industrial Services and A$463.9 million from Engineering and Construction.

Market Cap: A$2.37b

SRG Global sits at the crossroads of infrastructure spending and AI enabled automation, with around 80% of earnings coming from recurring asset maintenance contracts that can benefit from its Orbix and HAIstack software, drones, and AI modeling tools. Recent contract wins, guidance upgrades, and higher margins highlight how digital project management and data driven asset monitoring can contribute to earnings quality and cash flow visibility. At the same time, reliance on government infrastructure budgets and a relatively high P/E multiple keep execution risk front and center. For investors watching how industrial contractors use technology to navigate volatility in the AI trade and pursue steadier annuity style earnings, the full story at SRG Global is more nuanced than headline growth numbers suggest.

SRG Global’s recurring maintenance earnings and AI tools hint at a business that could be decoupling from pure construction cycles, but the real test sits inside the analyst forecasts for SRG Global

Generac Holdings (GNRC)

Overview: Generac Holdings supplies backup power and energy management equipment, from home standby generators and battery storage systems to large industrial units for data centers and microgrids, helping households and businesses keep the lights on when the grid is under strain.

Operations: Generac Holdings generates about US$3.6b of revenue from the United States and roughly US$0.8b from international markets, partly offset by a small segment adjustment.

Market Cap: US$14.9b

Generac Holdings is drawing fresh interest as AI driven demand for data center power and a more fragile grid put reliable energy infrastructure in the spotlight. The company has a growing role in backup power for hyperscale data centers and commercial customers, alongside its traditional residential generators and smart home energy devices. This supports analyst expectations for strong earnings growth despite today’s relatively narrow 4.4% net margin. At the same time, a high P/E multiple, funding that leans heavily on external borrowing, and pressure in residential solar and clean energy highlight the need for tight execution on new capacity and product shifts. The way this balance between ambitious growth and real risk is managed inside Generac is a key part of the current investment story.

Generac Holdings sits at the heart of AI driven power demand, yet its 4.4% net margin and heavy external borrowing raise questions about how the story really fits together inside the analysis report for Generac Holdings

The three stocks covered here are just a starting point, and the full Industrial Automation Leaders screener surfaces 15 more industrial automation companies with equally compelling AI, robotics, and infrastructure stories waiting to be unpacked. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction ideas for your watchlist.

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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.