AI Stocks for Enterprise Software Growth Beyond Nvidia

Energy prices are back in focus as Iran US frictions affect global supply, and that keeps inflation and interest rate expectations in play. In this kind of market, investors often look at AI stocks that help companies do more with the same or fewer resources. This article highlights 3 stocks from our AI Stocks screener that sit at the heart of that transformation.

The 3 AI stocks below are just a sample, and the full screen surfaced 204 more companies that sit across chips, cloud, software and LLMs with equally compelling narratives not covered here. Head straight into the Artificial Intelligence/ AI Stocks screener to identify potential leaders, analyze trade offs and focus on the AI opportunities that best fit your own approach.

Adobe (ADBE)

Adobe is a global software company best known for creative and document tools like Photoshop, Premiere Pro and Acrobat, as well as its marketing and analytics platforms that help enterprises manage customer experiences end to end. The company reports geographic revenue across Asia-Pacific at about US$3.6b and EMEA at about US$6.8b, with a segment adjustment of roughly US$14.8b. Adobe’s market cap sits around US$105b, which puts it firmly in large cap territory for investors considering established AI platforms rather than early stage bets.

Investors looking at AI productivity tools may pay attention to Adobe because it sits at the center of how brands actually produce, approve and distribute content, while trading on a low P/E relative to many software peers despite high margins and very strong ROE. The company is pushing into generative AI with Firefly and AI-first products that are already contributing to sales, yet faces execution risk from its freemium push, leadership changes and heavier reliance on external funding. The key question is whether this combination of cash generation, large enterprise footprint and discounted valuation is a temporary mispricing or a signal that the AI shift will be harder to monetize than the market currently anticipates.

Adobe’s AI push rides on strong margins and ROE; however, its lower P/E and freemium pivot leave a lot of questions on the table. Get the full picture in the analysis report for Adobe

Build your own AI productivity shortlist

Adobe and the two other AI stocks in this article all came from the same flexible screener, and you can run the same process for your own watchlist. Use our customisable Screener to combine filters like valuation, quality, balance sheet and risks, or tap into our curated Investing Ideas for ready-made shortlists built around clear themes.

Broadcom (AVGO)

Broadcom is a large digital infrastructure company that supplies the chips and software that move, connect, secure and manage data in data centers, telecom networks and private clouds. It generates roughly US$47.8b of revenue from Semiconductor Solutions and about US$27.7b from Infrastructure Software, which includes the VMware portfolio and mainframe and cybersecurity products. The company’s market cap is around US$1.9t, putting it among the largest listed technology stocks in the world.

Investors looking at AI infrastructure often focus on chip designers, but Broadcom sits in a different spot. It ties together custom AI silicon, high end networking and VMware based private cloud software, which helps explain its margins, free cash flow and ROE. At the same time, investors need to weigh rich expectations, the company’s use of debt funding and questions about off balance sheet AI financing and insider selling. For investors who want exposure to the picks and shovels of AI rather than just headline accelerator chips, Broadcom is a company that may be worth close attention.

Broadcom’s mix of custom AI silicon, networking and VMware software could mean investors are only seeing part of the story. Check the 4 key rewards and 2 important warning signs to see what the current expectations might be missing.

ServiceNow (NOW)

ServiceNow runs cloud software that helps large organizations manage everyday workflows across IT, customer service, HR, security and more, and increasingly acts as a control layer for how AI is used inside the enterprise. It reports about US$14.7b of revenue from Internet Software and Services, with most revenue coming from the United States and the rest spread across EMEA, Asia Pacific and other regions. The company is valued at roughly US$128.2b, which puts it firmly in large cap territory for investors who want exposure to AI driven enterprise infrastructure rather than consumer apps.

Investors interested in AI infrastructure may wish to pay attention to how ServiceNow is positioning itself as the workflow and governance layer for enterprise AI, not just another subscription software vendor. Earnings have grown at 35.7% per year over 5 years. AI related contract value has already passed US$1b and security ARR has reached the same scale. At the same time, the stock has underperformed the wider software sector recently, management turnover is relatively high and margins have eased, which keeps valuation and execution risk in play. The combination of growth forecasts, deep enterprise embeddedness and an active AI security push illustrates why some investors focus less on short term noise and more on how essential its platform is becoming to large customers.

ServiceNow’s earnings growth and rising AI contract value suggest the headline story may still be incomplete. Scan the analyst forecasts for ServiceNow to see what current expectations might be missing about how this could play out.

Seeking Fresh Alternatives Before Others Catch On

Markets move quickly and the best breakout stories rarely stay under the radar for long. Scan fresh stock ideas now, before the crowd reacts and while it matters. Consider acting early rather than waiting for wider attention.

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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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