Global investors are watching central banks closely as mixed inflation readings in the US shape expectations for interest rate stability. That keeps borrowing costs and discount rates in focus, which matters for fast growing areas like artificial intelligence. When money is not getting more expensive as quickly, attention often shifts back to growth stories. This article highlights three AI stocks from our screener that stand out in the current market backdrop.
The three AI stocks covered below are only a starting sample, since the full screen surfaced 673 more companies with equally compelling narratives that are not included in this article. To identify and analyze those additional opportunities at your own pace, head straight into the Artificial Intelligence/ AI Stocks screener.
Overview: ServiceNow is a cloud software company that helps large organizations run critical workflows across IT, HR, security, customer service and more, increasingly acting like a digital control center for day to day operations and AI governance. Its platform connects requests, data and approvals so that processes move automatically across departments instead of being handled through manual emails and spreadsheets.
Operations: ServiceNow generates about US$14.7b in revenue from internet software and services, with roughly US$8.8b from the United States and the rest split across EMEA at about US$3.8b, Asia Pacific and other markets at about US$1.7b, and around US$500 million from the rest of North America.
ServiceNow gives investors exposure to the “picks and shovels” of enterprise AI. Its Now Assist and AI Control Tower tools are already tied to more than US$1b in AI related contract value, and a remaining performance obligations backlog near US$28b offers considerable revenue visibility. The business sits inside critical workflows for IT, security and governance, which helps support high renewal rates and expanding AI use cases. At the same time, a rich P/E multiple, reliance on higher risk external funding and heavy insider selling introduce valuation and governance questions that deserve attention. If ServiceNow continues to entrench itself as the control system for AI inside large enterprises, today’s mixed sentiment could prove short lived for long term investors willing to study the trade off in more detail.
ServiceNow’s AI contract momentum is accelerating, and the real story lies in how those workflows, backlog and valuation questions all fit together in the 3 key rewards and 1 important warning sign
Build your own AI workflow shortlist
ServiceNow and the other two AI stocks in this article all came from the same screener, but the real edge is in setting your own rules. Use our flexible Screener to mix filters like valuation, growth, balance sheet strength and risks, or start with one of our curated Investing Ideas for ready made stock shortlists.
Overview: Oracle is a global enterprise software and cloud company that provides the database, applications and AI infrastructure that many large businesses, governments and hospitals rely on to run core operations. Its portfolio spans cloud ERP and HR systems, healthcare and industry software, databases, AI and machine learning tools, and the hardware and services needed to run these technologies at scale.
Operations: Oracle generates about US$65.4b in revenue, with roughly US$58.5b from cloud and software, US$5.7b from services and US$3.1b from hardware, and around US$39.8b of total revenue coming from the United States.
Oracle has positioned itself as a key AI infrastructure partner, with its Gen2 cloud, large GPU superclusters and collaborations with OpenAI, Google and AWS contributing to a sizable contract backlog. At the same time, the company is taking on significant debt and has announced US$70b in planned data center capex, which has drawn credit rating concerns and increased stock price volatility. Its P/E is below many software peers, and valuation tools such as discounted cash flow analysis can be used by investors to form their own view of the stock’s pricing. For investors, the central question is whether Oracle’s whole stack AI approach and government and healthcare customer base will adequately balance the funding and execution risks that are now part of the investment narrative.
Oracle’s full stack AI story is accelerating, while its P/E and heavy capex plans keep investors debating what is already priced in. Get the context and key questions in the analysis report for Oracle
Overview: Palantir Technologies develops software platforms that help governments and companies bring together huge data sets, analyze them and turn insights into real world decisions, from national security and defense to hospitals, factories and financial institutions. Its Gotham, Foundry, Apollo and Artificial Intelligence Platform products are used to connect data, models and operations so users can act quickly in high stakes environments.
Operations: Palantir generates about US$3.2b in revenue from government customers and about US$2.9b from commercial clients, with roughly US$4.8b from the United States and just over US$900 million from the rest of the world.
Palantir Technologies sits at the intersection of AI, defense and data heavy commercial work, which is why many investors watch it closely even with an elevated P/E multiple. The company combines high margins, strong recent earnings growth and a debt free balance sheet with fast growing demand in US commercial and government markets. Management has highlighted very strong recent revenue and deal momentum, and several banks have lifted their price targets in response to the latest results. At the same time, funding via higher risk external borrowing, share price volatility and rich valuation metrics keep the risk side of the equation very real. That mix of quality, growth and pricing debate is what makes Palantir such a closely followed AI stock today.
Palantir’s combination of high margins, strong recent earnings growth and a debt free balance sheet is only half the story. Get the missing context in the analysis report for Palantir Technologies.
Seeking Alternatives Before The Crowd
Fresh opportunities do not sit still. While attention clusters around a few AI stories, plenty of potential breakouts stay under the radar for now. Do not get caught dropping behind, act now.
- Spot cash flow strength before momentum really starts flying by scanning companies in the 51 high quality undervalued stocks.
- Target resilient compounding potential while prices are still cooling by checking out the 88 resilient stocks with low risk scores.
- Ride income streams that could keep portfolios steady even when sentiment shifts by reviewing the 11 dividend fortresses.
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.
New:Manage All Your Stock Portfolios in One Place
We’ve created the ultimate portfolio companion for stock investors, and it’s free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks
Have feedback on this article? Concerned about the content? Get in touch with us directly.Alternatively, email editorial-team@simplywallst.com
Micron (MU) is booming, and it still doesn’t look ‘expensive’ based on next year’s earnings. So why does our own valuation say it could be worth 40% less?
About NasdaqGS:PLTR
Palantir Technologies
Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally.
Exceptional growth potential with outstanding track record.
Similar Companies
Market Insights
Picking portfolio winners takes more than hot airAndrew Legget
What Korea’s market says about your index fundMitchell Lawler
What does frontier-beating open
Weekly Picks
Rick_Orfordon Starfighters Space·7 days ago
The 1960s Fighter Jet That Could Crack Open a $20 Billion Satellite Market
Fair Value:US$519.8% undervalued
22followersusers have followed this narrative
·1commentusers have commented on this narrative
·3likesusers have liked this narrative
FU
FundamentalFlowon Vertiv Holdings Co·11 days ago
The Short and Long Term Compounder of Liquid Cooling industry.
John_Ericon SPX Technologies·6 days ago
I Fell in Love With a Data-Center Cooling Stock. Then I Opened the Filings.
Fair Value:US$2034.5% overvalued
20followersusers have followed this narrative
·2commentsusers have commented on this narrative
·4likesusers have liked this narrative
TR
tripledubon GQG Partners·1 day ago
The Cheap Genius Problem
RecentlyUpdated Narratives
DP_investon BWG·about 1 hour ago
High rates continues for Q4 ’26 – Q1 ’27
Fair Value:NOK 2359.4% undervalued
1followerusers have followed this narrative
·0commentsusers have commented on this narrative
·0likesusers have liked this narrative
AG
Agricolaon Salazar Resources·about 1 hour ago
A Case for Salazar Resources to reach CAD $2.50 – $7.50+ by 2030
StoxEuropeon Sipef·about 4 hours ago
Why I Invest in SIPEF?
Popular Narratives
oscargarciaon NVIDIA·2 months ago
The company that went from selling GPUs to gamers to becoming the AI arms dealer of the 21st century.
CubanEroson Microsoft·about 1 month ago
A wonderful business at reasonable price.
Fair Value:US$419.9118.3% overvalued
165followersusers have followed this narrative
·0commentsusers have commented on this narrative
·8likesusers have liked this narrative
KI
KiwiInveston Amazon.com·3 months ago
