3 AI stocks that combine earnings growth with valuation and debt questions

Artificial intelligence is at the center of many of the stories driving today’s markets, from a recovery in consumer demand in several countries to changes in interest rate expectations and tensions in energy markets. The challenge for investors is less about identifying AI trends and more about filtering through the crowded world of potential stocks related to semiconductors, software, large language models, ChatGPT, and cloud infrastructure. This is where ChatGPT and our AI stock screener, which focuses on companies directly involved in building AI, can help. The article below highlights three stocks from this screener that are attracting a lot of attention from investors.

Astera Research Institute (ALAB)

overview: Astera Labs designs semiconductor-based connectivity solutions that help move data quickly and reliably within cloud and AI data centers, combining high-speed chips and COSMOS management software to coordinate large hardware fleets. Its portfolio spans PCIe/CXL retimers, Ethernet and AI fabric switches, and memory connectivity controllers used by hyperscalers and system manufacturers.

operation: Astera Labs generates all of its US$1 billion in revenue from semiconductor products, with sales spread across Singapore (US$336.7 million), China (US$301.2 million), Taiwan (US$263.8 million), Rest of World (US$60.7 million), and the United States (US$39.1 million).

Market capitalization: $71.5 billion

Investors interested in AI infrastructure are looking at Astera Labs because it sits at the intersection of emerging standards like PCIe 6, CXL, and UALink that power large-scale AI clusters, and has already partnered with companies like NVIDIA, AMD, Microsoft, and Intel. Revenue growth has been very strong recently, and high growth is expected to continue. First quarter 2026 revenue was supported by PCIe 6 demand and growth in Scorpio X-Series fabric switches. At the same time, the stock trades on a wealth of valuation metrics, is highly exposed to hyperscaler AI spending, and has seen insider selling and significant stock price volatility. This means the upside case comes with significant risks if AI data center spending and standard adoption do not unfold as expected.

Astera Labs is at the heart of building AI, but with its extensive reputation and reliance on hyperscalers, the real story is the balance between opportunity and risk, which is revealed by two major rewards and two key warning signs.

Salesforce (CRM)

overview: Salesforce provides cloud-based customer relationship management tools to help businesses manage sales, service, marketing, and data. AI agents like Agentforce and their Data 360 engines are designed to allow humans and AI to work together on one platform. The company’s products also include Slack, e-commerce, and analytics tools that connect customer data and workflows across industries and company sizes.

operation: Salesforce generates US$42.8 billion in revenue from its enterprise cloud computing platform, with approximately US$25.9 billion of sales concentrated in the United States, with the remainder coming from Europe, Asia Pacific, and other markets in the Americas.

Market capitalization: $124.3 billion

Salesforce is gaining attention because its core CRM platform is tightly integrated with AI agents, a growing data cloud business, and Slack. Together, these will reshape how customers operate sales and services and increase switching costs. Agentforce’s recurring revenue already exceeds $1 per year. Recent acquisitions like Fin are aimed at enhancing AI-driven customer support, and management is pairing this with significant share buybacks and a focus on profitability. At the same time, rising debt, potential disruption from AI to traditional subscriptions, and increased competition from hyperscalers mean any upside talk comes with execution risk and valuation discussions that cautious investors may need to consider more closely.

Salesforce’s AI flywheel for Agentforce, Data Cloud, and Slack is accelerating. However, the real story is how core CRM, margins, and repurchases fit together, as outlined in Salesforce’s analytics report.

SAP (XTRA:SAP)

overview: SAP provides enterprise software and cloud services that help large organizations perform core functions such as finance, supply chain, human resources, procurement, and customer experience, and is increasingly incorporating SAP Business AI into products such as S/4HANA, SuccessFactors, and its business technology platform.

operation: SAP generates revenues of approximately €37.3 billion, of which €33.4 billion comes from applications, technology and support and €3.9 billion from core services across its global customer base.

Market capitalization: 157.5 billion euros

Investors focused on AI infrastructure and enterprise software are focused on SAP because it is at the center of mission-critical ERP and supply chain systems, and customers are now enhancing these systems with generative AI, autonomous workflows, and robotics pilots. Earnings have increased 27.6% over the past year, and the stock trades at a P/E of 21.4, which some see as supported by high-quality earnings and an estimated discount to future cash flows. At the same time, mixed governance signals, rising CEO pay, and external debt financing risks raise questions to consider before deciding how SAP fits into an AI-centric portfolio.

SAP’s 27.6% earnings growth and 21.4x P/E suggest a stronger core than many are giving it credit for, but the real twist lies in what analysts are forecasting for SAP and what that means for governance concerns.

The three AI stocks in this article are just a starting point. The full screener surfaces an additional 643 companies related to semiconductors, software, LLM, ChatGPT, and cloud infrastructure that may have similarly compelling narratives within the artificial intelligence/AI stock screener. Using Simply Wall St, you can identify the AI-building opportunities that best align with your own beliefs by analyzing and filtering those companies by the specific triggers and stories that matter to you.

Take control of your investment journey

If you’re interested in Salesforce or any of these companies, sign up for free on Simply Wall St and add the company to your watchlist to monitor stock price versus 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.

Looking for a fresh alternative before you leave?

Buzz about a new stock can go from quiet to skyrocketing faster than most investors can react. Take advantage of this crucial moment and act now before they are completely captured.

• Expand your earning potential by scanning 8 dividend bastion companies that are currently under the radar, but aim to combine strong balance sheets with impressive dividends.
• We identify leading stocks in important metals by reviewing 30 blue-chip stocks in rare earth metals that could benefit from increased demand momentum, especially in next-generation batteries, magnets, and advanced manufacturing.
• Get ahead of the reinvention of the energy system by checking out 34 grid technology and infrastructure stocks whose selected companies are working to upgrade the grid and grid software and hardware investors are just starting to pay attention to.

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.

Do you have feedback on this article? Interested in its content? Please contact us directly. Alternatively, email editorial-team@simplywallst.com.