Artificial intelligence is moving from headline hype to practical tools in everything from chips and cloud to software and large language models like ChatGPT. At the same time, inflation data across major economies is softening in places, energy prices are adjusting and central banks are rethinking the pace of rate moves. For investors, that mix of moderating price pressures and steady demand in pockets of services, energy and high tech is one reason AI remains on the radar. This article uses our focused AI Stocks screener to highlight 3 stocks directly tied to this theme.

Trend Micro (TSE:4704)

Overview: Trend Micro is a Japan headquartered cybersecurity company that sells software and services to protect computers, networks, cloud workloads and email from threats, increasingly using AI to detect and respond to attacks in real time for both enterprises and consumers worldwide.

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

Market Cap: ¥776.3b

Trend Micro puts AI at the center of its cybersecurity platform, with recent partnerships across OpenAI and Anthropic feeding into TrendAI Vision One for threat analysis, AI usage governance and secure AI development programs. The company pairs this product focus with high reported earnings quality, strong current and forecast return on equity, and analyst expectations for steady earnings growth, even as its P/E sits above software peers. At the same time, funding that leans on external borrowing, pressure in consumer segments outside Japan and volatility in the share price mean this is not a low risk story. The key question for investors is whether Trend Micro’s AI initiatives and shareholder friendly capital returns justify that premium and those trade offs.

Trend Micro’s AI push with OpenAI and Anthropic is attracting attention, but the real story may lie in how returns, earnings quality and the current P/E fit together in the DCF valuation analysis for Trend Micro

Datasection (TSE:3905)

Overview: Datasection is a Tokyo based company that runs AI data center and cloud services, builds data infrastructure, and sells analytics tools that track and interpret consumer voices and in store behavior across Japan and parts of Asia and South America.

Operations: Datasection generates most of its revenue from domestic business in Japan at ¥32,471.8m, with a smaller overseas segment of ¥1,199.6m and minor unallocated adjustments.

Market Cap: ¥110.6b

Datasection gives you exposure to the data and AI side of consumer insight, from web sentiment tools such as Insight Intelligence Q and Social Monitor to image and social media analysis, while also operating AI cloud infrastructure. The company only recently moved into profit and earnings over the last 5 years declined around 14% per year. Yet the stock trades on a higher P/E than the broader JP software group and has seen a very volatile share price, which suggests expectations around its AI partnerships, such as the Compal collaboration on AI infrastructure, are high. With meaningful dilution, full reliance on higher risk borrowing and a relatively inexperienced board, Datasection is a stock where the AI potential and funding structure both deserve closer inspection.

Datasection’s shift to profit and higher P/E suggest a story investors may not be pricing clearly, especially with volatile trading and dilution in the rear view. Cut through the noise with the full 1 key reward and 3 important warning signs (3 are major!)

PKSHA Technology (TSE:3993)

Overview: PKSHA Technology is a Tokyo based AI company that builds algorithms and software to automate customer support, voice and chat interactions, fraud checks, forecasting and other decision tasks for industries ranging from retail, banking and insurance to healthcare and education.

Operations: PKSHA Technology generates most of its revenue from AI SaaS solutions at roughly ¥10.4b, with reported segment and unallocated adjustments against total revenue of about ¥30.4b in Japan.

Market Cap: ¥82.7b

PKSHA Technology provides AI exposure at the software and workflow layer, with products like ChatAgent, VoiceAgent and Speech Insight aimed at reducing customer service costs while improving data quality across sectors. Forecast revenue and earnings growth in the high teens indicate that investors are expecting demand for these tools to persist, even as profit margins recently compressed to 7.9% and last year’s earnings declined 14.5%. A relatively high P/E and reliance on external borrowing highlight that the growth story comes with funding and valuation questions. Combined with active corporate moves such as the planned VideoTouch acquisition and recent buybacks, PKSHA is a stock where the balance between AI opportunities and execution risk may warrant closer attention.

PKSHA’s accelerating AI rollout, compressed margins and active buybacks hint at a story investors may be only half seeing; the real question is what the analyst forecasts for PKSHA Technology reveal about where this tension breaks next

The three AI stocks covered here are only a starting point, with the full Artificial Intelligence/ AI Stocks screener surfacing 61 more companies tied to chips, cloud, software, large language models and the wider ChatGPT and AI buildout, each with its own potential narrative. Use Simply Wall St to unlock that full list, then filter and analyze for the specific catalysts discussed here, including earnings quality, funding mix, valuation and growth expectations. This can help you focus on the AI stocks that best align with your highest conviction ideas.

Take Control of Your Investment Journey

If Trend Micro 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 Before They Fly?

New ideas can move from quiet to breakout fast, and the best entry points rarely stay open for long. Scan these fresh stock pools before the crowd and consider acting while opportunities are still developing.

• Track potential turnarounds early by following companies in the 1 elite penny stocks with strong financials that combine smaller share prices with balance sheets that may be stronger than many investors expect.
• Explore structural shifts in power demand with the curated 35 power grid technology and infrastructure stocks, which focuses on businesses tied to grid upgrades, network reliability and long term infrastructure spending themes.
• Review the specialist 33 elite gold producer stocks to see producers with meaningful exposure to the precious metals trade.

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.