NVIDIA Stock Leads Three AI Revenue Streams Investors Should Watch

AI is no longer just a cost line on big technology budgets. It’s becoming a revenue engine. With global data showing strong industrial activity in areas such as manufacturing and AI-related investments, investors are increasingly seeking companies that are already turning AI spending into real profits. Our Profitable AI Stock Screen doesn’t just talk about AI, we focus on companies that use AI to generate cash. In this article, we’ll introduce three stocks from our screener. Each stock shows how AI can drive real benefits, not just promises.

Nvidia (NVDA)

overview: NVIDIA is a U.S.-based chip company that builds hardware and software that powers AI data centers, gaming PCs, and advanced graphics for industries such as design, engineering, and automotive. Its GPU and AI platforms are at the heart of the large-scale AI models and data center projects you hear about.

operation: NVIDIA generates approximately USD 25.1 billion from its graphics division and approximately USD 228.4 billion from computing and networking, with its largest reported market being the United States at approximately USD 187.7 billion.

Market capitalization: 4,663.2 billion USD

NVIDIA is attracting attention because of its exposure to AI infrastructure combined with high profitability, including wide margins and high return on equity. Its P/E ratio is lower than many of its semiconductor peers, and our fair value estimate is close to current prices. At the same time, the company’s AI position relies on its CUDA, Vera Rubin, and related platforms staying ahead of competing chips and software. The sector also faces export controls, political scrutiny of data center power usage, and high customer spending requirements. Furthermore, insider sales and reliance on external funding mean this is still a prominent AI-focused company with significant execution and regulatory risks, making it worth understanding the full story in more detail.

NVIDIA’s broad margins and AI infrastructure reach are impressive, but the mix of export controls, power oversight, and insider selling obscures the risk-reward picture. That’s why it’s worth reading about 4 important rewards and 2 important warning signs (1 is important!).

ServiceNow (now)

overview: ServiceNow is an American software company that runs a cloud-based workflow platform that helps large organizations manage IT services, HR requests, customer support, security, risk, and AI governance in one connected system to continuously run daily business processes.

operation: ServiceNow generates approximately US$14 billion from its Internet Software & Services segment, with most of the revenue coming from the United States at approximately US$8.3 billion, followed by approximately US$3.6 billion from Europe, the Middle East, and Africa.

Market capitalization: US$101.4 billion

ServiceNow is of interest to AI-focused investors because it sits at the intersection of workflow, data, and decision-making, which is exactly where companies are looking to leverage AI responsibly. Revenue is expected to grow approximately 23% annually with mid-teens revenue growth on the back of high-quality subscription revenue and solid renewal behavior. Products like AI Control Tower and Workflow Data Fabric aim to make ServiceNow the operating system for AI in the enterprise. At the same time, the stock has a high P/E, recent insider sales, volatile stock price, and dependence on outside funding, so achieving ambitious AI revenue targets and partnerships with IBM, cloud providers, and integrators will be critical going forward.

ServiceNow’s efforts to become an AI operating system for workflows are accelerating, but the real story is how that translates into revenue quality and pricing power, and that’s starting to show in ServiceNow’s analyst forecasts.

Palantir Technologies (PLTR)

overview: Palantir Technologies builds data and AI platforms that enable governments and businesses to collect and analyze large datasets and inform real-world decision-making, from defense operations to hospital planning and enterprise workflows. The company’s Gotham, Foundry, Apollo, and artificial intelligence platform products are used across security, public sector, and commercial environments to connect information, run complex models, and support decision-making by both humans and AI.

operation: Palantir generates approximately US$2.8 billion from government customers and US$2.5 billion from commercial customers, of which the United States accounts for approximately US$4 billion, followed by the rest of the world with approximately US$800 million and the United Kingdom with approximately US$500 million.

Market capitalization: $270.7 billion

Palantir stands out in our profitable AI stock screen because it combines very high revenue growth, a 43.7% net profit margin, and a debt-free balance sheet with real-world AI adoption in defense, government, and large enterprises. Partnerships with the U.S. military, Google Cloud, Zeta Global, and other companies show the company’s platform is being used as the core infrastructure for AI-driven decision-making. Projections for revenue and revenue growth in the low 30% range highlight how much money is already flowing into the income statement. The tension is the high P/E ratio and the fact that all debt is tied to external borrowing, as well as valuation and financing risks due to continued scrutiny of public sector contracts. This means there is a positive story alongside meaningful enforcement and governance issues that investors need to consider carefully.

Palantir’s rapid revenue growth, 43.7% net profit margin, and debt-free balance sheet raise bigger questions. How much of this is already priced in, and what expectations are behind Palantir Technologies’ analyst forecasts?

The three stocks in this article are just a starting point. The full Profitable AI Stocks screening feature reveals an additional 58 companies with similarly compelling profit-driven AI stories. You can review these companies using the Profitable AI Stocks screening feature. Simply Wall St lets you unlock, filter, and analyze the specific catalysts and stories that matter to you, so you can identify the highest-conviction AI acquirers on your watchlist.

Take control of your investment journey

If you’re interested in NVIDIA or any of these companies, register for free on Simply Wall St and add your company to your watchlist to monitor the stock price compared to fair value and keep track of 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.

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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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