3 AI Stocks With Real Enterprise Software Growth Angles

Rising oil prices linked to renewed risk in the Strait of Hormuz are keeping inflation worries in focus and central banks cautious on rate cuts. That keeps attention on companies tied to the ChatGPT and AI build out, where spending is driven more by long term technology shifts than cheap money. This article highlights 3 AI Stocks screener picks that show how different parts of the AI stack can benefit from that spending.

The three stocks that follow are just a starting sample. The full screen surfaced 668 more companies across chips, software, cloud and LLMs with equally compelling AI narratives that are not covered here. If you want to identify your own high conviction angles in this theme, head straight into the Artificial Intelligence/ AI Stocks screener to filter and analyze the full list.

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Appian (APPN)

Overview: Appian is a software company that provides a low-code and AI powered automation platform to help large organizations design, run, and improve complex business processes across sectors like government, financial services, healthcare, and insurance. It sells cloud subscriptions, licenses, and services that support workflows such as case management, procurement, underwriting, and claims handling.

Market Cap: $2.2b

Appian gives you exposure to the AI workflow theme, where enterprises want to modernize legacy systems, cut manual work, and keep tighter control over compliance. The company is leaning into AI features across its low-code platform and data fabric, while working with partners such as Deloitte on high profile government and policing projects that can showcase its capabilities to other regulated industries. At the same time, Appian carries meaningful risks, including ongoing losses, negative shareholders’ equity, and pressure from much larger competitors that are pushing their own automation stacks. For investors, the mix of AI driven use cases, a recurring software model, and a complex balance sheet sets up a nuanced risk reward profile that is worth a closer look.

Appian’s AI workflow push could be masking a deeper story in its books. Before deciding how it fits your portfolio, review the full 3 key rewards and 3 important warning signs (2 are major!) that could influence your decision in either direction.

Build your own AI workflow shortlist

Appian and the other two AI stocks here all came out of a single screener, but the real edge is in building filters around the factors that matter most to you. Use our flexible Screener to mix metrics like valuation, future growth, risks and balance sheet strength, or tap into our curated Investing Ideas for ready made starting points.

Datadog (DDOG)

Overview: Datadog runs a cloud based observability and security platform that lets companies monitor the health, performance, costs, and security of their applications and infrastructure in one place, across services like logs, metrics, traces, AI workloads, and real user activity.

Market Cap: $100.8b

Datadog sits at the heart of the AI and cloud monitoring theme, as enterprises rely on it to keep complex, AI heavy systems reliable and secure while managing rising cloud bills. Earnings and revenue are both forecast to grow faster than the wider US market, and Datadog is already profitable. However, recent guidance and margin pressure have kept the stock volatile and raised questions about how much future growth is already priced in. In addition, insider selling, rich P/S multiples, and heavy competition from hyperscalers make this a high quality AI infrastructure play where execution and pricing power really matter. The details behind those trade offs are what can make Datadog either a core AI holding or one to treat with more caution.

Datadog’s rapid product expansion and AI exposure can look fully priced at first glance. Yet the real story sits in its growth runway and competitive pressure. Get the full context in the analysis report for Datadog

Dynatrace (DT)

Overview: Dynatrace runs an AI powered observability platform that helps large organizations monitor, secure, and optimize their applications, infrastructure, and digital user experiences across global cloud and on premise environments. It sells software, along with implementation, consulting, and training services, to customers in sectors such as banking, insurance, retail, transportation, government, and software.

Market Cap: $14.7b

Dynatrace gives investors focused exposure to AI observability and autonomous operations. Enterprises are looking to control complexity, improve reliability, and automate response as their systems get heavier on AI and cloud. Recent results showed stronger annual recurring revenue trends, rising consumption of its Grail log platform, and raised guidance, while the company is also returning cash to shareholders through sizeable buybacks. At the same time, a very high P/E multiple, longer sales cycles, reliance on large enterprise deals, and tough competition from cloud giants and open source tools mean expectations are already demanding. For investors, the real interest lies in whether Dynatrace can keep translating its AI driven product edge and go to market changes into durable growth and margin progress over the next few years.

Dynatrace’s AI observability story is gaining attention, but the key question is how its growth ambitions compare with its elevated P/E and enterprise-heavy sales model. Get the full context in the analyst forecasts for Dynatrace

Seeking Fresh Alternatives Beyond AI?

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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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