With global growth signals mixed, inflation trends pulling in different directions and central banks edging toward easier policy in some regions, investors are looking harder at companies that already turn AI spending into real earnings. Profitable AI Stocks focuses on exactly that, highlighting businesses that use AI to support cash generation rather than consume it. Instead of trying to guess which early stage projects might eventually pay off, you can study companies that already show profits from AI related investment. In this article, you will see 3 of the strongest stocks from the Profitable AI Stocks screener.

ServiceNow (NOW)

Overview: ServiceNow is a US based software company that runs cloud platforms for large organisations to manage everyday work, from IT support and cybersecurity to HR, finance, customer service and AI governance, so that routine tasks and complex workflows move through one central system instead of scattered tools.

Operations: ServiceNow generates about US$13.96b in revenue from internet software and services, with around US$8.27b coming from the United States and the rest spread across EMEA, Asia Pacific and other international markets.

Market Cap: US$109.65b

ServiceNow sits at the crossroads of workflow automation and AI, helping large customers run IT, HR, security and compliance processes while increasingly acting as the control tower for how AI is used inside those businesses. Analysts expect earnings and revenue to grow faster than the broader US market, and Simply Wall St’s DCF work suggests the current share price sits well below estimated cash flow value, even as the stock trades on a high P/E. At the same time, recent insider selling and share price volatility, plus a modest return on equity, remind you this is not a one way bet. The real question is whether its expanding AI partnerships and deeply embedded workflows justify that premium.

ServiceNow’s rich P/E and expanding AI role suggest that the simple label of “expensive growth stock” might be missing something important. Get the full picture with the 3 key rewards and 2 important warning signs

CrowdStrike Holdings (CRWD)

Overview: CrowdStrike Holdings is a US based cybersecurity company that sells subscriptions to its Falcon platform, which protects laptops, servers, cloud workloads, identities and data, and uses AI to spot and respond to attacks in real time for customers around the world.

Operations: CrowdStrike generates about US$5.09b in revenue from security software and services, with roughly US$3.39b from the United States and the rest from Europe, the Middle East and Africa, Asia Pacific and other regions.

Market Cap: US$197.52b

CrowdStrike sits at the center of AI driven security, with its Falcon platform securing endpoints, cloud workloads and generative AI use, while partnerships with AWS, major AI providers and insurers show how deeply its tools are embedded in critical systems. At the same time, the stock’s very high P/S multiple, ongoing losses and heavy reliance on continued high growth expectations mean there is little room for disappointment, especially with recent insider selling and executive pay drawing attention. For investors tracking profitable AI themes, the key question is whether CrowdStrike’s growing role in AI threat detection, identity security and frontier AI risk justifies today’s premium and the confidence that it can move firmly into sustained profitability.

CrowdStrike’s soaring P/S and central role in AI driven security suggest a story that is still unfolding, where valuation and profitability expectations may be masking the real tension. Get the full 2 key rewards and 1 important warning sign

Teradyne (TER)

Overview: Teradyne is a US based company that builds automated test systems for semiconductors and circuit boards, along with collaborative robots and autonomous mobile robots that help factories and warehouses handle precise, repetitive work more efficiently.

Operations: Teradyne generates about US$3.09b from Semiconductor Test, US$364.23m from Product Test and US$330.57m from Robotics, making chip testing its largest revenue driver by a wide margin.

Market Cap: US$57.78b

Teradyne gives you exposure to the picks and shovels of AI and data center build outs, with its semiconductor test systems and robotics closely tied to rising demand for AI accelerators and more automated factories. Earnings and revenue are forecast to grow faster than the broader US market, margins are already strong with a 22.6% net margin and 27.2% ROE, and recent broker upgrades highlight how AI related test demand is feeding into orders. At the same time, a rich valuation relative to estimated cash flow value, tariff and trade risks, and softer robotics revenue keep execution risk front and center. This is why a closer look at Teradyne’s AI backlog, capital returns and funding mix matters before you decide how it fits in your portfolio.

Teradyne’s strong margins and tight link to AI test demand could be masking a more complex story about how much growth is already priced in. See how the analyst forecasts for Teradyne reframes that risk reward balance

The three stocks in this article are only a starting point, and the full Profitable AI Stocks screener has surfaced 59 more companies with equally compelling cash flow and AI adoption stories inside the Profitable AI Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, AI earnings drivers and risk narratives that matter to you so you can focus on the highest conviction opportunities in this theme.

Take Control of Your Investment Journey

If Teradyne 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.

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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.