Energy and oil price risks are keeping inflation in focus for central banks, which keeps money tight and investors picky. That is pushing more attention toward companies linked to artificial intelligence, where many see clearer growth stories than in broader markets. This article walks through 3 stocks from our AI Stocks screener that are closely tied to the ChatGPT and AI build out and explains what sets each apart.
The 3 stocks below are just a starting sample, and the full screen surfaced 62 more companies directly tied to the ChatGPT and broader AI build out, with equally compelling stories that are not covered here. To go deeper into this opportunity set, head straight into the Artificial Intelligence/ AI Stocks screener to identify, filter and analyze the highest conviction ideas for your watchlist.
Trend Micro (TSE:4704)
Overview: Trend Micro is a Japan headquartered cybersecurity company that sells software and services to protect computers, cloud workloads, networks, email and identities, with a growing focus on AI powered threat detection and response for enterprises and consumers worldwide.
Operations: Trend Micro generates revenue primarily from Japan with ¥87,873 million, followed by the Asia Pacific at ¥77,088 million, Europe at ¥65,128 million and the Americas at ¥55,822 million, with a small ¥3,574 million segment adjustment.
Market Cap: ¥897.5 billion
Investors looking at AI infrastructure may wish to pay attention to how Trend Micro is integrating large language models into its TrendAI platform to detect and patch cyber threats, while also using AI internally with the aim of keeping costs in check. The company has a long operating history, net margins around 13.3% and a Return on Equity near 32.3%. At the same time, an unstable dividend record, reliance on external borrowing and board turnover create governance and capital structure questions. Recent earnings, new AI partnerships with Anthropic and a valuation that some models describe as below their estimated fair value combine to make Trend Micro a security that some investors may examine more closely.
Trend Micro’s strong margins and high Return on Equity could be masking a deeper story about how AI, board turnover and debt all fit together. Start with the 2 key rewards and 1 important warning sign
Build your own AI and cybersecurity stock shortlist
Trend Micro and the two other AI focused stocks in this list all came from a single screen, which is where the real opportunity starts for you. Use our flexible Screener to mix filters around valuation, future growth, balance sheet strength, risks and dividends, or jump straight into our curated Investing Ideas for ready made starting points.
WingArc1st (TSE:4432)
Overview: WingArc1st is a Japan based software company that helps businesses design and output forms, manage and digitize documents with AI powered OCR, and turn internal data into dashboards and data apps through platforms like Dr.Sum and MotionBoard.
Operations: WingArc1st generates all of its ¥31,437 million in revenue from its Data Empowerment Business in Japan.
Market Cap: ¥109.0 billion
WingArc1st provides exposure to the practical side of AI, where tools such as AI OCR and data visualization are central to how companies handle forms, invoices and internal data. The company reports profit margins around 21% and trades at a P/E that is below many software peers, which has attracted attention given the quality of earnings and an estimated discount to some valuation models. At the same time, funding relies fully on higher risk external borrowing and the stock has not matched the performance of the broader Japanese market over the past year. A share buyback plan running through May 2027 adds another factor that may not be obvious from a quick screen.
WingArc1st’s P/E and profit margins may hint at a quieter rerating story, especially with that buyback in play and borrowing in the background. For the full context, see the analysis report for WingArc1st
Appier Group (TSE:4180)
Overview: Appier Group is an AI native SaaS company that helps businesses use artificial intelligence to find customers, personalize marketing and manage data, through tools that power digital ads, tailored online experiences and AI driven customer data platforms across sectors like e commerce, finance and gaming.
Operations: Appier Group generates all of its ¥46,487 million in revenue from its AI SaaS Business, with sales spread across Northeast Asia, the US and EMEA, Greater China and Southeast Asia.
Market Cap: ¥98.9 billion
Appier Group operates in the commercial AI ecosystem, supplying tools that help advertisers, retailers and financial firms use Agentic AI to turn data into higher value customer interactions. At the same time, profit margins are relatively thin and returns on equity are modest. In addition, the stock trades on a richer P/E than many software peers, which can matter if growth slows. Funding relies on external borrowing and the share price has been volatile. Investors who care about both growth potential and risk controls may wish to consider these factors carefully.
Appier Group’s richer P/E and thin margins could be masking a turning point for its AI SaaS model. Get the full story in the analysis report for Appier Group
Seeking Fresh Alternatives Before Momentum Flies
Markets move fast and early movers often set the tone. Use fresh stock lists to spot potential breakouts before momentum is fully caught. Windows can close quickly, so review the data and decide whether it fits your strategy.
- Look for potential high yield momentum plays while they are still under the radar and scan the 39 dividend fortresses before income opportunities begin to change.
- Spot early strength in companies built on resilient balance sheets and run the list of solid balance sheet and fundamentals (40 results) while these ideas are still relatively unnoticed.
- Explore fresh upside in overlooked sectors and work through the 28 best rare earth metal stocks before broader market attention shifts toward similar themes.
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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