AI is no longer a side theme in markets; it sits at the center of stories ranging from Singapore’s AI-linked exports to the chips that power everyday applications like ChatGPT. At the same time, inflation trends, rate expectations and energy prices are reshaping how investors think about growth, risk and capital spending on technology. The AI Stocks screener focuses on companies directly tied to this shift, including semiconductors, software, large language models, ChatGPT and cloud infrastructure. Below, the spotlight turns to three leading candidates from this screener that many investors are watching closely.
Cerillion (AIM:CER)
Overview: Cerillion is a London based software company that provides billing, charging and customer relationship management platforms for telecom operators and subscription businesses worldwide, helping them run complex services, manage customer relationships and handle revenue across mobile, broadband, TV and enterprise contracts.
Operations: Cerillion generates most of its revenue from Software at £22.6m, followed by Services at £17.8m and Other income at £2.0m.
Market Cap: £310.2m
Cerillion sits at the intersection of telecom infrastructure and AI, with tools like its Enterprise Product Catalogue and Business Insights platform using AI to help carriers design, price and monitor services more efficiently. The company combines this with high profitability, including net margins above 30% and return on equity above 20%, which many investors view as signs of an efficient software model. Analysts expect both revenue and earnings to grow faster than the wider UK market, although the recent H1 update showed revenue and profit under pressure, a reminder that contract timing and project delivery can affect results. Add in concerns about debt funded liabilities and board independence, and Cerillion becomes a stock where the quality story and the risks both deserve close attention.
Cerillion’s high margins and telecom AI positioning could be masking the real debate: how much quality risk is already priced in. Before you decide, scan the 2 key rewards and 1 important major warning sign
Bytes Technology Group (LSE:BYIT)
Overview: Bytes Technology Group is a UK based IT reseller and services company that helps organisations buy and manage software, hardware, cloud and AI tools, backed by cybersecurity, licensing and consulting support across the United Kingdom, Europe and other markets.
Operations: Bytes Technology Group generates virtually all of its £220.6m revenue from its IT Solutions Provider segment, with about £211.9m coming from the United Kingdom and the balance from Europe and the rest of the world.
Market Cap: £968.3m
Bytes Technology Group draws investor attention because it sits where AI, cloud and cybersecurity spending meet, with a long history as a reseller now supported by investment in new systems, a marketplace portal and extra technical staff to deepen customer relationships. The stock trades below some estimates of fair value and analyst targets, which some investors read as a margin of safety if the business executes on its plans. The catch is that profit growth is expected to be modest, margins face pressure from lower margin public contracts and recent board changes and external funding leave governance and balance sheet discipline as key issues to track.
Bytes Technology Group’s AI and cloud role could mean the headline story is only half told, especially if the current share price and analyst targets are pulling in different directions. See how the analysis report for Bytes Technology Group might reframe the risk reward trade off.
AdvancedAdvT (AIM:ADVT)
Overview: AdvancedAdvT is a London based software company that provides business, financial management and workforce tools, along with healthcare compliance and intelligence software, while also offering an AI driven intelligent process automation platform to customers across the UK, Europe and North America.
Operations: AdvancedAdvT generates all of its £53.4m revenue from Internet Software & Services, entirely in the United Kingdom.
Market Cap: £211.2m
AdvancedAdvT sits where AI powered automation meets everyday business and healthcare workflows, which helps explain why analysts see earnings growing much faster than the wider UK market despite recent earnings volatility. Revenue stands at £53.4m, net profit margin has narrowed to 8.6% after a one off £5.6m loss and return on equity is a modest 3%, so the core question is whether margins can rebuild from here. The stock trades below some estimates of fair value even with a higher P/E, suggesting investors may be discounting execution risk, board independence concerns and reliance on external borrowing more than the long term AI and software opportunity.
AdvancedAdvT’s earnings rebound story, higher P/E and UK software focus suggest the headline risk might be masking something more interesting in the 2 key rewards and 2 important warning signs
The three AI stocks covered here are only a starting point, with the full Artificial Intelligence/ AI Stocks screener uncovering 15 more companies that share similarly compelling AI driven narratives across chips, software, large language models and cloud infrastructure. Use Simply Wall St to identify and analyze the specific catalysts, business models and risk profiles that align with your own highest conviction view of the AI and ChatGPT 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.
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