Microsoft Stock And 2 AI Infrastructure Picks Backed By Cloud And Chip Demand

Asia is quietly shaping the next chapter of the AI story. Taiwan’s AI driven sectors continue to support the country’s growth, which keeps global attention on chips, cloud and software that power tools like ChatGPT. That interest can spill over into AI stocks well beyond Asia as investors look for exposure to the theme. This article highlights 3 stocks from our AI screener that stand out right now.

The stocks covered below are just a sample, and the full screen surfaced 203 more companies directly tied to the AI theme with equally compelling narratives that are not included here. To identify and analyze the ideas that best fit your own view on the AI trend, head straight to the Artificial Intelligence/ AI Stocks screener.

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Microsoft (MSFT)

Overview: Microsoft is a global technology company that sells cloud services, office and productivity software, Windows, Xbox, and advertising tools to consumers and enterprises, with AI features like Copilot increasingly woven through its products.

Operations: Microsoft generates roughly US$138b from Intelligent Cloud, US$140b from Productivity and Business Processes, and US$54b from More Personal Computing, split between about US$171b in the United States and US$161b from other countries.

Market Cap: US$3,656.6b

Investors watching AI may pay close attention to Microsoft, which sits at the center of cloud infrastructure, productivity software and AI tools like Copilot, all backed by very high profit margins and strong free cash flow. Azure and custom AI chips such as Maia aim to improve the economics of that growth, while the OpenAI relationship and a growing web of AI partnerships keep Microsoft deeply embedded in enterprise workloads. At the same time, heavy data center spending and ongoing antitrust and pricing probes in the US and UK are real watchpoints that could affect how tightly Microsoft can tie AI to Azure. The full story is how these strengths and risks interact over the next phase of AI adoption.

Microsoft’s AI push is supported by very high margins and strong free cash flow, yet the real twist may lie beneath the headlines. Get the full picture in the analysis report for Microsoft

Build your own AI cash flow shortlist

Microsoft and the other two AI stocks in this article all surfaced from a single Simply Wall St screener, but the real edge comes from creating filters that mirror your own approach. Use our customizable Screener to mix metrics like valuation, growth and balance sheet strength, or lean on the foundations of our curated Investing Ideas.

Cerebras Systems (CBRS)

Overview: Cerebras Systems is an AI infrastructure company that builds wafer scale chips and full compute racks designed to run inference and generative AI workloads at very high speeds, targeting use in data centers up to supercomputer scale. Its customers range from hyperscalers and foundation model labs to enterprises and Sovereign AI programs across the United States and other regions.

Operations: Cerebras Systems currently generates its revenue entirely from semiconductors, with around US$681 million coming from that segment.

Market Cap: US$54.9b

Cerebras Systems sits at the center of the fast inference theme that many investors are watching, with its wafer scale engine architecture, large OpenAI and AWS agreements, and a multi year backlog that underpins future revenue visibility. At the same time, the company is still loss making with shrinking cloud margins, relies heavily on a few large customers, and uses higher risk external borrowing. All of these factors may add pressure if growth or funding conditions change. Analysts currently expect very strong earnings and revenue growth and see room for upside, but recent insider selling and a highly volatile share price keep the risk dial firmly turned up, especially as major lock up expiries approach later in 2026.

Cerebras Systems sits at the crossroads of fast AI compute and high volatility, with contracts that hint at something bigger. See how the story evolves in the 3 key rewards and 2 important warning signs (1 is major!)

Alphabet (GOOGL)

Overview: Alphabet is the parent company behind Google Search, YouTube, Google Cloud and Android, earning most of its money by selling digital ads and subscriptions across its apps, and by providing AI enabled cloud and productivity tools to businesses worldwide.

Operations: Alphabet generates around US$367.1b from Google Services, US$77.6b from Google Cloud and about US$1.5b from Other Bets, with most revenue coming from the United States and Europe, the Middle East and Africa.

Market Cap: US$4,195.0b

Alphabet offers direct exposure to global search and YouTube cash flows, together with an AI focused cloud platform that is an important profit driver. The company reports very high net margins and return on equity. However, heavy AI infrastructure spending, rising debt issuance to fund capital expenditure and ongoing US and EU antitrust scrutiny are pressure points that could affect free cash flow and flexibility. For investors who want a core AI and cloud holding backed by substantial unrealized stakes such as SpaceX, an important consideration is how the balance between cash generation, capital expenditure and regulation evolves over time.

Alphabet’s AI-heavy cash generation and cloud growth story appears closely connected to its spending and regulatory backdrop. Get the analysis report for Alphabet to see whether that balance is quietly shifting.

Curious About What You Might Be Missing

Fresh stock ideas can move from quiet to breakout quickly. Do not get caught watching while momentum builds elsewhere under the radar for now. Consider taking a closer look.

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• Hunt for resilient compounders that aim to hold up when conditions change by running the focused 88 resilient stocks with low risk scores and see which stocks keep showing up.

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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