Artificial intelligence is starting to reshape how people interact with devices, and wearable technology sits right in the middle of that shift. From smart glasses and camera earbuds to AI agents that might one day replace many app taps, this change could matter for investors watching the next wave of consumer hardware. Qualcomm is one of the companies pushing new AI-powered designs, and that activity can ripple across suppliers, component makers, and device platforms. This article breaks down three stocks from the Wearable Technology Innovators screener that are closely exposed to these AI hardware trends.

Blackline Safety (TSX:BLN)

Overview: Blackline Safety develops connected gas detectors and wearables that monitor industrial workers in real time, combining hardware, sensors and cloud software to detect hazards and trigger alerts across sites in Canada, the United States, Europe and other regions. Its devices and analytics platform are used in sectors like energy, construction and logistics to track worker location, exposure and communications within a single safety system.

Operations: Blackline Safety generates approximately CA$59.1 million from products and CA$100.9 million from services, with revenue spread across the United States (CA$73.6 million), Europe (CA$40.9 million), Canada (CA$29.9 million) and other regions (CA$15.5 million).

Market Cap: CA$786.9 million

For investors watching AI wearables, Blackline Safety stands out as a pure play on connected worker gear, with cloud services already larger than hardware and tied to gas detection, location tracking and real time monitoring. The company is exposed to similar trends benefiting Qualcomm, as miniaturised sensors and always on connectivity become standard in industrial vests, badges and future AI agents on the jobsite. At the same time, Blackline is loss making, has relied on higher risk external funding, and has seen insider selling and a plan to be acquired for about CA$780 million, which all deserve close attention. The key consideration is whether the combination of recurring service revenue, new platforms like G8 and acquisition terms aligns with your expectations for Blackline Safety’s long term value.

Blackline Safety’s shift toward recurring services and new platforms like G8 could be reshaping its story, but the real tension sits in how that growth potential stacks up against funding risks in the 1 key reward and 1 important warning sign

Apple (AAPL)

Overview: Apple designs and sells iPhone, Mac, iPad and a wide range of wearables like Apple Watch, AirPods and Vision Pro, all tied together with services such as the App Store, Apple Music, Apple TV, iCloud, Apple Pay and other subscription products. Its devices and platforms are used by consumers, businesses, schools and governments, with revenue also coming from support, advertising and licensing its technology.

Operations: Apple generates about US$189.0b of revenue from the Americas, US$118.9b from Europe, US$75.9b from Greater China, US$37.4b from the Rest of Asia Pacific and US$30.2b from Japan.

Market Cap: US$4.3t

Apple sits at the center of the AI wearables story as both a hardware and services heavyweight, with Apple Watch, AirPods, Vision Pro and potential future form factors giving it several ways to respond to Qualcomm’s push into AI driven devices. Earnings and margins are already strong, while Services, which carry high margins, are becoming a larger piece of the pie as Apple Intelligence and AI partnerships with groups like Google and Nvidia are woven deeper into the ecosystem. At the same time, the stock trades at a premium, faces antitrust and regulatory scrutiny in regions like the EU and India, and contends with pressure from new AI hardware entrants. The open question for investors is how this balance of AI opportunity, rich ecosystem and regulatory and valuation risks ultimately affects Apple’s long term value.

Apple’s rich hardware and Services story may be masking what really matters right now: how the premium price lines up with AI, regulation and future returns in the analysis report for Apple

Zepp Health (ZEPP)

Overview: Zepp Health is a smart wearable and health technology company that sells Amazfit and Zepp branded smartwatches, bands, rings, hearables and health services in about 90 countries, using its Zepp OS and mobile apps to turn activity and biometric data into coaching, sleep support and wellness insights.

Operations: Zepp Health currently generates about US$271.9 million in revenue from its Amazfit branded products.

Market Cap: US$68.8 million

Zepp Health sits in the middle of the Qualcomm led AI wearable surge, with Amazfit watches, the Helio Ring and Zepp OS already integrating tools such as GPT 4, sleep AI algorithms and coaching features that focus on richer on-device agents rather than basic step counters. At the same time, the company is still loss making, carries higher risk external borrowing and operates in a fiercely competitive category where devices can become commoditised and regulation around health data may raise costs. With forecasts pointing to fast revenue growth, a low P/S multiple and new AI driven hardware in development, the key issue is whether Zepp Health’s push into higher end sports and health devices can outweigh these funding and execution risks.

Zepp Health’s push into AI driven wearables and higher end health gear could be easy to underestimate, especially with its current size and borrowing profile. Checking the analyst forecasts for Zepp Health might reveal a twist in how this story could evolve.

The three stocks covered here are just a starting point, as the full Wearable Technology Innovators screener surfaces 4 more companies whose wearable and AI stories could be just as important to your thesis. Use Simply Wall St to identify, analyze and filter for the exact catalysts, business quality markers and narrative traits that matter to you so you can focus on the highest conviction ideas in this theme.

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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.