3 AI software stocks that individual investors are paying attention to in 2026

Artificial intelligence is at the center of today’s market debate, with investors weighing easing but still rising inflation, shifting interest rate expectations, energy risks, and mixed global economic growth signals. In this context, the AI ​​Stocks screener provides a focused way to examine companies directly related to ChatGPT and building AI across semiconductors, software, LLM, cloud, and transformation. Instead of trying to keep track of all the macro headlines, you can use this theme to explore your business as it relates to important technology changes currently underway. Ahead, you’ll see three hot stocks identified by this AI screener.

Cadence Design System (CDNS)

overview: Cadence Design Systems develops AI-driven software, hardware, and silicon IP that chipmakers and electronics companies use to design, test, and validate complex semiconductor and electronic systems, from early simulation to advanced packaging and 3D-ICs. Its platform spans core EDA tools, security IP, and digital twin solutions that support everything from data centers to RF and computational fluid dynamics.

operation: Cadence generates annual revenues of approximately US$5.5 billion, almost entirely from its CAD/CAM software, with sales worldwide spanning the United States, Asia, Europe, the Middle East, Africa, and the Americas.

Market capitalization: $100.6 billion

Cadence Design Systems is at the center of AI and chip design, with AI-enabled tools, IP, and digital twin platforms that large enterprise customers use for increasingly complex semiconductor and data center projects. This strength comes with trade-offs that investors may want to consider. Meanwhile, solid revenue quality and experienced governance, along with partnerships with NVIDIA, TSMC, Samsung, and Rapidus around AI agents and advanced nodes, give the business a strong commercial foundation. On the other hand, high P/E ratios, dependence on external funding, exposure to China and new competitive questions after the open source EDA headlines mean expectations are tough and execution risk is significant. Understanding how that trade-off fits your objectives is an important consideration.

Cadence Design Systems stands at the crossroads of AI demand and rich promise. The real question is whether the current P/E fully reflects the AI ​​tools and partnerships, or whether there is still room for Cadence Design Systems’ DCF valuation analysis.

Samsara (IOT)

overview: Samsara connects fleets, industrial sites, and other physical operations to its cloud platform and captures data from cameras, GPS trackers, and sensors to improve safety, reduce theft, and streamline daily workflows through AI-driven insights and automation tools.

operation: Samsara generates approximately US$1.7 billion in annual revenue from software and programming, of which approximately US$1.5 billion comes from the United States and US$255.6 million from the rest of the world.

Market capitalization: 21.8 billion USD

Samsara stands out in the AI ​​space because it directly connects software to real-world results, from reducing incidents at customers like Coach USA and First Student to new AI tools like Agent Studio and AI safety cameras that address theft, downtime, and compliance costs. The company has achieved profitability, has a significant recurring revenue base, and reports solid customer expansion. However, the stock trades at a high P/S multiple, faces insider selling, and is fully reliant on external borrowing, increasing funding risk when the going gets tough. For investors tracking AI small-cap stocks, the tension between Samsara’s growing data moat and its richer valuation is a central consideration.

Samsara’s accelerating data moat and high P/S multiple suggest a story that many investors may only half understand. The big picture lies in 2 major rewards and 1 important warning sign

Everpure (P)

overview: Everpure, Inc. provides enterprise data storage and management solutions built around Purity software and all-flash hardware to help customers run databases, applications, virtual machines, AI workloads, and unstructured data across on-premises and hybrid cloud environments. The company’s portfolio includes FlashArray and FlashBlade systems, Evergreen subscription products, Kubernetes-focused Portworx software, and an AI-driven management platform designed to simplify and secure data operations at scale.

operation: Everpure generates approximately US$3.9 billion annually entirely from computer storage devices, of which approximately US$2.7 billion comes from the United States and US$1.3 billion from other regions.

Market capitalization: 22.7 billion USD

Everpure is tackling the AI ​​infrastructure story head-on with its AI-enabled storage platform, Kubernetes-friendly Portworx, and growing partnerships with players like NVIDIA and Super Micro. Revenue growth is strong and the fiscal year 2027 revenue outlook shows solid contract visibility. At the same time, the stock trades well below some fair value estimates, earning it promotion to the Zacks Top Rank, with a mix of attractive upside signals, along with clear watch points such as a very high P/E multiple, reliance on outside funding, and recent insider selling. For investors focused on AI enablers rather than leading GPU stocks, a key consideration is how these growth drivers and risks compare to the next stage of Everpure’s AI adoption story.

Everpure’s AI-enabled storage story and contract visibility are only half the story, with the real tension between growth signals and sky-high P/E multiples. To see how these elements fit together, check out Everpure’s analysis report.

The three AI stocks in this article are just a starting sample. An additional 202 companies with similarly compelling AI and ChatGPT narratives are shown full screen within the Artificial Intelligence/AI Stock Screener. Simply Wall St lets you identify, filter, and analyze the specific catalysts of interest across semiconductor, software, LLM, cloud, and AI transformation, so you can focus on the AI ​​opportunities that best fit your most conviction ideas.

Take control of your investment journey

If you’re interested in Cadence Design Systems or any of these companies, register for free on Simply Wall St and add the companies to your watchlist to monitor stock prices compared to fair value and track any new developments. Once migrated, manage your holdings with a portfolio command center that filters out the noise and delivers only the most important and actionable updates. Our community allows you to filter the best ideas from thousands of investor perspectives throughout your journey. Discover hidden catalysts and risks early to accelerate decision-making and stay ahead of the market.

Searching for new alternatives to these AI stocks

New themes can quickly gain momentum. By the time the crowds roll in, the best entry points may already be gone. Look at fresh ideas while they still matter and consider acting on them early in the cycle.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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