Artificial intelligence sits at the center of many market conversations right now, from chip makers and cloud providers to software platforms building on tools like ChatGPT. While global growth signals are mixed, with manufacturing and inflation trends varying across regions, AI remains a core theme many investors are watching. The AI Stocks screener focuses on companies that are directly exposed to this shift in semiconductors, software, LLMs and cloud infrastructure. In this article, you will see three stocks from that screener that help turn a broad AI story into specific ideas you can research further.

Meta Platforms (META)

Overview: Meta Platforms runs some of the world’s largest social and messaging apps, including Facebook, Instagram, WhatsApp and Messenger, and is expanding into virtual and augmented reality devices like Quest headsets and Ray Ban Meta AI glasses. The company also develops powerful AI systems and infrastructure that support its consumer apps and new services such as Meta AI and external AI compute offerings.

Market Cap: US$1.37t

Meta Platforms sits at the center of consumer social media and the infrastructure behind today’s AI boom, backed by very high profitability and a market value above US$1.3t. Investors are watching a big shift as management pours large sums into AI data centers, in house chips and Meta Compute, with the goal of renting excess AI capacity and competing with established cloud providers. At the same time, youth safety cases, EU regulation and a long running loss making Reality Labs unit highlight how much capital is riding on unproven bets. With Simply Wall St’s DCF pointing to upside versus the current share price, a key consideration for investors is whether Meta’s AI strategy will ultimately justify the scale of that spending or test investor patience.

Meta Platforms is pouring huge sums into AI chips and data centers while Simply Wall St’s DCF still points to upside. Before you decide if that spend is justified or overhyped, review the DCF valuation analysis for Meta Platforms

Allegro MicroSystems (ALGM)

Overview: Allegro MicroSystems designs and manufactures sensor and power integrated circuits that sit inside systems like electric vehicles, factory robots, and AI data center equipment, helping control motion, manage power, and improve energy efficiency. Its chips are used by automotive and industrial customers around the world in areas such as braking, motor control, current sensing, and cooling for high performance computing.

Market Cap: US$7.72b

Allegro MicroSystems is attracting attention because it sits at the crossroads of electrification, EVs, industrial automation, and AI data centers, with data center revenue recently reaching 17% of sales after six straight quarters of growth. The company is working through one off losses and relies heavily on automotive customers, while also facing price pressure and rising competition in China, which can all weigh on margins and sentiment. At the same time, analysts expect strong earnings growth, see upside to the current share price, and point to design wins in EV inverters, robotics, and energy infrastructure as signs of deeper customer relationships. For investors focused on AI related hardware, the tension between that growth story and the funding and execution risks is what makes Allegro so interesting right now.

Allegro MicroSystems sits at the intersection of EVs, factory automation and AI data centers, yet the full earnings story is still easy to overlook. Before this stays under the radar or expectations run ahead of reality, review the analyst forecasts for Allegro MicroSystems

Fortinet (FTNT)

Overview: Fortinet is a cybersecurity company that sells hardware, software and cloud services that help organisations secure their networks, data centers, endpoints and cloud workloads. It uses AI tools to detect and respond to threats more quickly across its integrated Security Fabric platform.

Market Cap: US$113.18b

Fortinet catches investor attention because it combines AI driven security products with very strong profitability, including net margins around 28% and a track record of high returns on equity near 137%. The company is leaning into AI security, Secure Access Service Edge and integrated platforms, with recent product launches and partnerships with groups like NVIDIA and Intel aimed at protecting AI workloads and complex networks. The trade off is that the stock trades on a high P/E ratio compared with many US software peers and some models flag it as potentially overvalued, while its hardware focus and past security vulnerabilities add business risk. For investors seeking exposure to AI infrastructure security, Fortinet may be a company worth a closer look.

Fortinet’s high margins and premium P/E suggest investors see more in its AI security story than traditional peers. To understand what the market might be pricing in, review the analyst forecasts for Fortinet.

The three AI stocks in this article are only a small slice of what is happening around ChatGPT, chips, software and cloud, with the full Artificial Intelligence/ AI Stocks screener surfacing 669 more companies that each carry their own potential narrative. Use Simply Wall St to identify the specific catalysts, analyze the AI exposure and filter for the story that best fits your highest conviction ideas.

Take Control of Your Investment Journey

If Meta Platforms 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 Beyond AI?

New breakout stories often move fast while the data is still under the radar for now. Use these fresh stock ideas before the crowd catches on and act now.

• Spot resilient businesses before momentum goes mainstream by scanning a curated list of solid balance sheet and fundamentals (45 results) that keep financial stress and surprise shocks lower on your watchlist.
• Ride potential income trends while prices are still settling by reviewing 9 dividend fortresses that aim to balance high yield with balance sheet strength.
• Position ahead of possible infrastructure shifts by checking 35 power grid technology and infrastructure stocks that could benefit if electricity demand and grid investment pick up.

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.