AI is no longer just a cost line for big tech budgets; it is becoming a profit engine. With global data pointing to solid industrial activity in areas like manufacturing and AI-related investment, investors are increasingly looking for companies that already turn AI spending into real earnings. Our Profitable AI Stocks screener focuses on businesses that are not only talking about AI but are using it to generate cash. In this article, you will see 3 of the stocks from the screener, each showing how AI can be a driver of actual profits, not just promises.

NVIDIA (NVDA)

Overview: NVIDIA is a US-based chip company that builds the hardware and software powering AI data centers, gaming PCs, and advanced graphics for industries such as design, engineering, and automotive. Its GPUs and AI platforms sit at the core of many of the large AI models and data center projects you hear about.

Operations: NVIDIA generates about US$25.1b from its Graphics segment and about US$228.4b from Compute & Networking, with the United States its largest reported market at about US$187.7b.

Market Cap: US$4,663.2b

NVIDIA attracts attention because it combines AI infrastructure exposure with high profitability, including wide profit margins and high returns on equity. Its P/E is lower than many semiconductor peers, and our fair value estimate is close to the current price. At the same time, its AI position depends on CUDA, Vera Rubin and related platforms staying ahead of rival chips and software. The sector also faces export controls, political scrutiny on data center power use, and heavy customer spending requirements. In addition, insider selling and reliance on external funding mean this is a prominent AI-focused company that still carries meaningful execution and regulatory risk, which makes the full story worth understanding in detail.

NVIDIA’s wide margins and AI infrastructure reach are impressive, but the mix of export controls, power scrutiny and insider selling makes the full risk reward picture less obvious. It is therefore worth reading the 4 key rewards and 2 important warning signs (1 is major!)

ServiceNow (NOW)

Overview: ServiceNow is a US software company that runs cloud-based workflow platforms, helping large organisations manage IT services, HR requests, customer support, security, risk and AI governance in one connected system so everyday business processes keep moving.

Operations: ServiceNow generates about US$14.0b from its Internet Software & Services segment, with most revenue coming from the United States at about US$8.3b, followed by Europe, the Middle East and Africa at about US$3.6b.

Market Cap: US$101.4b

ServiceNow is interesting for AI focused investors because it sits where workflows, data and decisions meet, which is exactly where enterprises are trying to put AI to work responsibly. Earnings are forecast to grow about 23% per year alongside mid teens revenue growth, backed by high quality subscription income and strong renewal behaviour. Products like AI Control Tower and Workflow Data Fabric aim to make ServiceNow an operating system for AI in the enterprise. At the same time, the stock carries a rich P/E, recent insider selling, a volatile share price and reliance on external funding, so execution on ambitious AI revenue targets and partnerships with IBM, cloud providers and integrators will matter a lot from here.

ServiceNow’s push to become an AI operating system for workflows is gathering pace, but the real story is how that translates into revenue quality and pricing power, which the analyst forecasts for ServiceNow starts to reveal

Palantir Technologies (PLTR)

Overview: Palantir Technologies builds data and AI platforms that help governments and companies pull together massive datasets, analyse them and turn the output into real world decisions, from defence operations to hospital planning and corporate workflows. Its Gotham, Foundry, Apollo and Artificial Intelligence Platform products are used across security, public sector and commercial settings to connect information, run complex models and support both human and AI driven decision making.

Operations: Palantir generates about US$2.8b from Government customers and about US$2.5b from Commercial customers, with the United States contributing roughly US$4.0b of revenue, followed by the Rest of World at about US$0.8b and the United Kingdom at about US$0.5b.

Market Cap: US$270.7b

Palantir stands out in the Profitable AI Stocks screener because it combines very high earnings growth, a 43.7% net margin and a debt free balance sheet with real world AI deployments in defence, government and large enterprises. Partnerships across the US Army, Google Cloud, Zeta Global and other corporates show its platforms being used as core infrastructure for AI driven decision making. Forecasts for earnings and revenue growth in the low 30% range underline how much is already flowing through the income statement. The tension is valuation and funding risk, with a high P/E and all liabilities tied to external borrowing, plus ongoing scrutiny of public sector contracts. This means the upside story sits alongside meaningful execution and governance questions that investors need to weigh carefully.

Palantir’s rapid earnings growth, 43.7% net margin and debt free balance sheet raise a bigger question: how much of this is already priced in and what expectations sit behind the analyst forecasts for Palantir Technologies

The three stocks in this article are only a starting point, and the full Profitable AI Stocks screener surfaced 58 more companies with equally compelling profit driven AI stories that you can review using the Profitable AI Stocks screener. Use Simply Wall St to unlock, filter and analyze the specific catalysts and narratives that matter to you so you can identify the highest conviction AI earners 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.