Artificial intelligence is no longer just a buzzword; it is a core part of how chips, software, cloud platforms and tools like ChatGPT are being built and used. With inflation pressures easing in some regions and central banks reassessing policy, investors are again paying attention to companies directly tied to this shift, from semiconductors to large language models. The AI Stocks screener focuses on businesses at the heart of that transition, helping you filter a crowded market into a more targeted watchlist. In this article, you will see 3 of the strongest candidates from that screener.

Microsoft (MSFT)

Overview: Microsoft is a global technology company that sells software, cloud services, devices and gaming, with products like Microsoft 365, Windows, Azure, LinkedIn, Xbox and a growing suite of AI tools such as Copilot embedded across its ecosystem.

Operations: Microsoft generates most of its revenue from Productivity and Business Processes (US$135.3b) and Intelligent Cloud (US$128.4b), with More Personal Computing contributing US$54.6b.

Market Cap: US$2.90t

Microsoft has a significant presence in AI because the same Azure infrastructure that supports OpenAI models also underpins Copilot in Microsoft 365, NHS healthcare deployments and a wide range of enterprise partnerships, while being supported by a large and profitable software base. Earnings growth has recently been strong and margins are high, yet the stock trades on a lower P/E than many software peers, which some investors view as a relative value opportunity. On the other hand, areas such as AI data center investment, regulatory scrutiny of its cloud and productivity stack, and recent insider selling all receive close attention from some market participants. A key consideration for investors is how these AI workloads, contracts and governance choices could influence the overall risk reward profile from here.

Microsoft’s AI engine is accelerating across Azure and Copilot, yet the stock still carries a lower P/E than many software peers. This raises a big question that the DCF valuation analysis for Microsoft only starts to answer.

ServiceNow (NOW)

Overview: ServiceNow is a cloud software company that helps large organisations run their digital workflows. It uses a single platform to connect IT, customer service, HR, finance and other departments so that tasks, approvals and data flow more smoothly, with AI increasingly embedded in those processes.

Operations: ServiceNow generates about US$14.0b in revenue from Internet Software & Services, with around US$8.3b from the United States and the rest spread across EMEA, Asia Pacific and other North American markets.

Market Cap: US$105.35b

ServiceNow stock stands out in the AI software space because it already sits in the middle of mission critical workflows, turning AI into practical automation rather than experiments. The company is producing billions in free cash flow, carries a net cash position and is guiding to about US$15.7b to US$15.8b in 2026 subscription revenue. This is supported by partnerships with IBM, NVIDIA, Microsoft, AWS and others that frame ServiceNow as an AI control layer for large enterprises. The flip side is a rich valuation, insider selling and reliance on continued enterprise IT and AI spending, so execution on AI monetisation and workflow adoption really matters for investors watching this story unfold.

ServiceNow’s AI engine is quietly becoming the control room for large enterprise workflows, yet many investors still focus on headline valuation. The real tension sits inside the analyst forecasts for ServiceNow, where one assumption could change the whole story

Alphabet (GOOGL)

Overview: Alphabet is the parent company of Google and YouTube, earning most of its money from online advertising while also running products like Search, Android, Chrome, Maps, Gmail, Google Play and subscription services such as YouTube TV and YouTube Music, alongside a fast growing Google Cloud and AI platform.

Operations: Alphabet generates the bulk of its US$421.5b in revenue from Google Services at about US$355.1b, with Google Cloud contributing US$66.5b and Other Bets US$1.5b.

Market Cap: US$4.38t

Alphabet offers a mix of a cash rich ad business, a profitable cloud platform and an AI stack that stretches from custom chips to apps like Gemini inside Workspace, all supported by a 33.5% ROE and a 37.9% net margin. The company is investing heavily in AI infrastructure with large equity funding, a rapidly expanding Google Cloud backlog and deals such as the multi year SpaceX GPU arrangement, which could reshape how its AI services scale. At the same time, it carries a P/E of 28.1x, high capex and ongoing regulatory and governance questions, so an important consideration for investors is how that risk reward balance evolves as AI monetisation spreads beyond search and YouTube.

Alphabet’s cash rich ads engine and AI infrastructure push are moving in tandem, but the real story sits in how those trends intersect inside the analysis report for Alphabet, where one hidden pressure point could change everything

The three AI stocks in this article are only a starting point, with the full screener surfacing 195 more companies tied directly to chips, software, LLMs, cloud and the broader ChatGPT shift, each with its own potential AI narrative waiting to be tested. To identify and analyze the highest conviction angles across that group, use the Artificial Intelligence/ AI Stocks screener to filter for the exact catalysts, balance sheet strength and AI exposure that matter most to your approach.

Take Control of Your Investment Journey

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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.