Artificial intelligence is sitting at the center of today’s market conversation, with central banks watching inflation, bond yields reacting and energy prices keeping pressure on policy makers. For investors, the AI Stocks screener focuses on companies directly tied to this ChatGPT and AI build out, from semiconductors and chips to software, LLMs, cloud and broader digital transformation. This article highlights three candidates from that universe, helping you focus on businesses that are plugged into the AI trend rather than trying to track every macro headline yourself.
Cerillion (AIM:CER)
Overview: Cerillion is a London based software company that supplies telecom operators and subscription businesses with billing, charging and customer management systems, including AI enabled tools to design products, manage tariffs and run customer relationships across digital channels.
Operations: Cerillion generates revenue primarily from Software at £22.6m, followed by Services at £17.8m and Other income of £2.0m.
Market Cap: £301.3m
Cerillion stands out in the AI stocks universe because it combines telecom focused AI products, such as its Enterprise Product Catalogue and Business Insights platform, with profitability metrics like a 22.6% ROE and a net margin above 30%. Forecast revenue and earnings growth in the mid teens and a share price that sits slightly below an estimated cash flow based fair value have caught analyst attention. However, recent half year results showed revenue and profit declines and a high level of non cash earnings that may affect quality. The company is also leaning into agentic AI through its 26.1 release and high profile DTW Ignite projects, which could matter far more than the headline numbers suggest.
Cerillion’s telecom focused AI tools, strong margins and slightly below fair value share price hint at a story the market may not have fully priced in, yet recent revenue and profit declines raise sharp questions that the 3 key rewards and 1 important major warning sign
Bytes Technology Group (LSE:BYIT)
Overview: Bytes Technology Group is an IT solutions provider that helps organisations in the UK, Europe and beyond source and manage software, security, AI and cloud services, alongside the hardware and training needed to run them effectively.
Operations: Bytes Technology Group generates virtually all of its £220.6m revenue from its IT Solutions Provider segment, with £211.9m coming from the United Kingdom and the balance from Europe and the rest of the world.
Market Cap: £969.3m
Bytes Technology Group sits at the heart of how companies are adopting AI and cloud, pairing software licensing with cyber security, digital workspace and a growing public cloud offering. This is all supported by high quality earnings and a very high return on equity. While recent earnings declined and 2027 guidance points to flat profit as higher technology costs reset the base, the company is still guiding for high single digit to low double digit gross profit growth and is investing in a marketplace portal, new systems and extra technical staff to support that. In addition, the group has exposure to Microsoft’s AI priorities, an active buyback program and regular dividends, so there is more to this story than the headline profit guidance suggests.
Bytes Technology Group’s high quality earnings, strong UK focus and Microsoft AI exposure could be masking a bigger story about where profits go next, so it is worth reading the analysis report for Bytes Technology Group
AdvancedAdvT (AIM:ADVT)
Overview: AdvancedAdvT is a London based software company that provides business, healthcare compliance and human capital management solutions, alongside financial management, resource planning, talent and workforce management tools, and a machine learning based intelligent process automation platform used by customers in the UK, Europe, North America and beyond.
Operations: AdvancedAdvT generates its £53.4m revenue from Internet Software & Services, all of which currently comes from the United Kingdom.
Market Cap: £224.4m
AdvancedAdvT sits squarely in the AI conversation, with a machine learning automation platform on top of core business and healthcare software, and analysts expecting earnings to grow around 32% per year while the shares trade almost 20% below an estimated fair value. At the same time, profit margins have compressed from 25.1% to 8.6%, earnings in the last year declined sharply and the balance sheet leans entirely on external borrowing, all of which raise valid questions about risk. Add in a very high P/E multiple and a recent £5.6m one off loss, and AdvancedAdvT becomes a stock where taking a closer look at what is driving that growth outlook and valuation gap really matters.
AdvancedAdvT’s earnings growth expectations and gap to estimated fair value look compelling. However, compressed margins, a fully debt funded balance sheet and a very high P/E mean the real story sits inside the 2 key rewards and 2 important warning signs
The three AI stocks in this article are only a starting point, with the full Artificial Intelligence/ AI Stocks screener uncovering 15 more companies whose AI, cloud and ChatGPT related stories could be just as compelling. Use Simply Wall St to identify, analyze and filter for the specific catalysts and narratives that matter to you so you can focus on the AI stocks that best match your highest conviction ideas.
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Seeking Fresh Alternatives Before They Fly?
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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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