3 AI Stocks Backed By Cloud Demand And Data Center Growth

Euro Area GDP growth is reaffirmed around 1% year on year, with Q2 expansion linked to AI related investment. That keeps attention on companies tied to the ChatGPT and AI stocks theme. Capital is already flowing toward semiconductors, software and cloud tools that support large language models. This article highlights 3 AI stocks from the screener that stand out in terms of business quality, balance sheet and exposure to this trend.

The 3 stocks in this article are just a starting sample, and the full screen surfaced 675 more companies with equally compelling AI related narratives that are not covered here. To identify and analyze the AI stocks that best fit your own conviction, head straight to the Artificial Intelligence/ AI Stocks screener.

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Microsoft (MSFT)

Microsoft is a global technology giant whose software, cloud services and devices sit at the center of how businesses and consumers work, play and build with AI. It generates about US$140b in revenue from Productivity and Business Processes, around US$138b from Intelligent Cloud, and roughly US$54b from More Personal Computing, giving it multiple engines tied to AI tools, Azure and Windows. With a market cap of around US$3.7 trillion, Microsoft is one of the largest listed companies worldwide.

Investors watching the AI buildout may consider Microsoft, which combines a large Azure cloud and Copilot user base with high profitability and strong cash generation. Earnings growth has outpaced the broader software sector, and net margins above 40% indicate that AI and cloud spending are currently supported by strong economics rather than purely sentiment. At the same time, heavy capital expenditure, regulatory scrutiny around Azure and Microsoft 365, high CEO pay and recent insider selling show that this is not a risk-free story. The key issue is how those trade offs compare with projected cash flows, exposure to OpenAI and the company’s long AI backlog, which is where deeper analysis becomes important.

Microsoft’s AI story is accelerating. The real question is how much future cash generation is already priced in. Walk through the DCF valuation analysis for Microsoft to see what the market might be missing.

Build your own AI profitability shortlist

Microsoft and the two other AI stocks in this list all came from a single Simply Wall St screen, but the real edge is in shaping filters around your own approach. Use our flexible Screener to mix factors like valuation, cash flows, balance sheet strength and risks into your own shortlist, or tap straight into our curated Investing Ideas.

Cerebras Systems (CBRS)

Cerebras Systems builds wafer scale AI chips and racks that aim to run large language models faster than traditional GPUs for inference and other AI workloads. The company currently generates around US$681 million in revenue from semiconductors and has a global customer base that includes hyperscalers, AI labs and enterprises. With a market cap of about US$54.9b, Cerebras Systems sits firmly in the large cap AI infrastructure group.

Investors looking at AI infrastructure beyond the usual GPU stocks may find Cerebras Systems hard to ignore. The company is tied into multi year OpenAI and AWS deals, carries a reported RPO backlog above US$24b, and just guided core 2026 revenue to about US$880 million to US$890 million, with Q2 core revenue at roughly US$210 million and capacity set to expand more than 10x. At the same time, Cerebras is still loss making, relies heavily on a small number of large customers, and faces a large insider share unlock in November 2026 that could add volatility. The real story is how those powerful growth contracts, fast cloud and inference traction and Simply Wall St fair value estimates stack up against the funding risks, widening losses and insider selling pressures that are now in focus.

Cerebras Systems is riding huge RPO and capacity plans, yet the full picture is not obvious from headlines alone. Go straight to the analyst forecasts for Cerebras Systems to see what those contracts might really signal next.

Super Micro Computer (SMCI)

Super Micro Computer builds high performance server and storage systems that power AI, cloud and data center workloads, selling everything from GPU packed AI racks and liquid cooled servers to modular components and management software. The company generates about US$39.1b in revenue from its high performance server solutions business and has a market cap of roughly US$25.3b, putting it firmly in the large cap AI infrastructure group.

Super Micro Computer sits in the middle of the scramble to build AI data centers, with a record order backlog above US$60b and fiscal 2027 revenue guidance of US$65b to US$72b catching investors’ attention. The company offers tailored, energy efficient AI racks that can support the latest GPUs, which helps justify interest alongside earnings growth and a P/E that sits well below many AI hardware peers. The catch is meaningful risk around margin volatility, heavy reliance on a handful of very large customers and potential equity funding that could dilute returns. As a result, the real opportunity is in understanding how that backlog, growth outlook and pricing power balance against those pressures.

Super Micro Computer’s AI backlog and revenue guidance are grabbing headlines, yet the real story sits in how pricing power, margins and customer concentration fit together. Start with the analysis report for Super Micro Computer to see what might be hiding in plain sight

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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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