Artificial intelligence is moving from headline hype to real-world tools, and investors are looking for practical ways to plug into that trend. While economies from Canada to Malaysia show mixed signals on growth, trade, inflation, and consumer demand, AI spending is becoming a core line item for chips, software, cloud and large language model platforms that power services like ChatGPT. The Artificial Intelligence / AI Stocks screener focuses on companies directly tied to this shift, helping you filter broad market noise into a focused watchlist. Below, the article will walk through 3 notable stocks highlighted by this screener.

Trend Micro (TSE:4704)

Overview: Trend Micro is a Japan headquartered cybersecurity company that sells software and services to protect computers, cloud workloads, email, networks and AI driven systems, including tools for threat detection, identity protection and incident response across both enterprises and consumers worldwide.

Operations: Trend Micro generates most of its revenue from Japan (¥87,873m) and Asia Pacific (¥77,088m), followed by Europe (¥65,128m) and the Americas (¥55,822m).

Market Cap: ¥727.5b

Trend Micro gives you exposure to the growing need for AI centric cybersecurity, with its TrendAI platform, Vision One and recent Anthropic partnerships targeting code security, AI governance and risk monitoring across cloud, network and endpoints. Profitability metrics such as a 13.3% net margin and 32.3% ROE, along with buybacks, indicate that management is focused on returns. However, revenue and earnings growth forecasts are relatively modest and the stock trades on a slightly higher P/E than many software peers. At the same time, dividend instability, consumer segment challenges and governance questions around board independence mean the story is not one sided. This is one reason many investors are watching how Trend Micro executes on its AI security initiatives and capital allocation over the next few years.

Trend Micro’s AI centric security push, solid profitability metrics and buybacks raise a clear question: how do these pieces really fit together once you factor in the 2 key rewards and 2 important warning signs

Datasection (TSE:3905)

Overview: Datasection is a Tokyo based AI and data analytics company that runs AI cloud and data center services, and sells tools for web and social media listening, risk monitoring, in store behavior tracking and image processing to customers in Japan and across Latin America.

Operations: Datasection generates most of its revenue from Domestic Business at ¥32,471.8m, with a smaller Overseas Segment contributing ¥1,199.6m and a minor unallocated adjustment.

Market Cap: ¥167.7b

Investors looking at data centric AI plays may be interested in Datasection, which combines AI cloud infrastructure with tools that turn social media posts, images and in store behavior into usable insights. The company has only recently moved into profitability and the 5 year earnings trend shows declines, while a high share of non cash earnings makes it harder to interpret underlying cash generation. Governance signals are mixed, with recent dilution and a relatively new, less independent board. In addition, the stock trades on a high P/E and has shown sharp price swings, which may reflect expectations around its AI infrastructure partnerships that current financial data does not fully explain.

Datasection’s swing from losses to profit, its high P/E, and its sharp price moves suggest the story is still taking shape, and the 1 key reward and 3 important warning signs (3 are major!) could highlight what the recent volatility is really hinting at.

PKSHA Technology (TSE:3993)

Overview: PKSHA Technology is a Tokyo based AI company that builds algorithm driven solutions and software, from demand forecasting and fraud detection to AI powered chat, voice and helpdesk tools, to help retailers, banks, insurers, educators and healthcare providers automate decisions and customer interactions.

Operations: PKSHA Technology generates most of its revenue in Japan, with ¥10,424.2m from AI SaaS, a ¥20,248.4m segment adjustment and a small unallocated adjustment of ¥260.6m.

Market Cap: ¥85.2b

PKSHA Technology sits at the intersection of AI and real world workflows, with tools that power everything from call centers and fraud checks to retail planning. Analysts expect both earnings and revenue to grow at around 18% a year. That growth profile comes with trade offs, including a rich P/E multiple, net margins that have moved from 15% to 7.9%, higher reliance on external funding and some recent share price volatility. On the other hand, a highly independent, experienced board and a completed buyback program suggest a focus on governance and shareholder returns, while potential deals like the planned VideoTouch acquisition show how PKSHA could expand its AI ecosystem further.

PKSHA Technology’s rich P/E, shifting margins and recent buyback paint an AI story many investors may be only half seeing, and the analyst forecasts for PKSHA Technology could reveal what the market might be missing next

The three AI stocks covered here are just the start, with the full screener surfacing 61 more companies tied to chips, software, LLMs, ChatGPT and cloud infrastructure that carry equally compelling narratives through the Artificial Intelligence/ AI Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts that matter to you, from AI driven revenue models to balance sheet strength and governance signals, so you can focus on opportunities in this theme that best align with your own investment approach.

Take Control of Your Investment Journey

If PKSHA Technology or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond These AI Stocks?

Some of the strongest breakouts start quietly, while momentum is still building and information is fresh. Do not let tomorrow’s moves pass you by. Take time to review the market now.

• Target reliable income by scanning hand picked high yield opportunities through the 52 dividend fortresses before prices move and yields start dropping.
• Spot potential under the radar turnarounds by reviewing carefully filtered 57 high quality undiscovered gems while they are still flying below most investors’ screens.
• Position for long term staying power by checking curated 46 resilient stocks with low risk scores before the crowd catches on to their steadier momentum.

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.