Oracle stock and two AI stocks support real earnings growth

The AI ​​stock theme sits at the intersection of easing inflation signals, evolving interest rate expectations, and strong demand for advanced electronics and software. As policymakers weigh disparate data on growth, housing, and energy, many investors are focusing on companies with direct ties to semiconductors, cloud computing, and large-scale language models like ChatGPT that power new AI tools. This screener is specifically focused on businesses related to ChatGPT and AI building, and helps filter through a crowded field. In this article, we introduce three AI stocks that screeners should consider for further research.

Samsara (IOT)

overview: Samsara is an IoT and AI company that connects data from vehicles, equipment, and industrial sites into a single platform to help customers improve safety, reduce theft, and streamline operations. The company’s tools use sensor and video data to power real-time monitoring, AI coaching, and workflow automation in sectors such as transportation, construction, logistics, and public services.

operation: Samsara generates approximately US$1.73 billion in revenue from software and programming, of which approximately US$1.48 billion comes from the United States and approximately US$255.6 million from other regions.

Market capitalization: 22.33 billion USD

Samsara stands out on the AI ​​theme because its platform turns real-world sensor and video data into measurable improvements in safety and efficiency, backed by customer stories showing reduced accident rates. Investors are focused on the company’s transition to profitability and strong recurring revenue base, while also considering its higher valuation than some of its peers and relatively low current ROE. There was also a lot of reliance on insider sales and external funding. Recent product launches such as AI Multicam, Agent Studio, and global asset tracking tools highlight further aspects of Samsara’s story beyond recent stock price movements.

Samsara’s accelerating transition to profitability and recurring revenue is only half the story, especially given its lofty valuation and insider sales. Get the full context with 2 major rewards and 1 important warning sign.

Baidu (BIDU)

overview: Baidu is a Beijing-based internet and AI company that operates one of China’s largest search and content ecosystems, along with AI cloud, self-driving, online video, and entertainment services.

operation: Baidu generates approximately CAD 103 billion from Baidu General Business and CAD 26.3 billion from iQIYI, with total revenue of approximately CAD 128.7 billion from the People’s Republic of China.

Market capitalization: 36.49 billion USD

Baidu broadly showcases China’s AI construction through ERNIE Bot, AI Cloud, and Apollo Go self-driving. The business is still powered by its core search and content platforms. Analysts have highlighted potential for revenue growth, partnerships in autonomous mobility, and plans for a dual listing in Hong Kong as factors that could increase interest from broader investors. At the same time, recent margin pressures, a high recurring loss of CA$16.5 billion, and increased AI investment mean current profitability is low and execution risk is high. How these tradeoffs stack up is central to determining Baidu’s role in an AI-focused portfolio.

Baidu’s ERNIE Bot, cloud and AI push in autonomous driving may be masking a very different story behind recent margin pressures and a C$16.5 billion loss, one significant reward and two significant caveats.

Oracle (ORCL)

overview: Oracle is a global enterprise software and cloud company that provides the databases, business applications, and AI-enabled cloud infrastructure that large enterprises use to run their finance, human resources, supply chain, and industry-specific systems. The company’s Oracle Cloud Infrastructure and Fusion applications are tightly integrated, allowing customers to run critical workloads and apply AI to their data to support everything from medical records to defense and manufacturing operations.

operation: Oracle generates approximately USD 58.53 billion from cloud and software, USD 5.74 billion from services, and USD 3.08 billion from hardware, of which approximately USD 39.84 billion comes from the United States and approximately USD 27.5 billion from other countries, including Japan, Germany, and the United Kingdom.

Market capitalization: $364.1 billion

Oracle is in the spotlight because its AI-focused cloud infrastructure and massive supercluster builds support a record $638 billion AI-related backlog. Revenue growth, a 25.2% profit margin, and a P/E below the US software average point to one aspect of the fundamental picture. At the same time, high debt-driven data center expenditures, rising credit risk, high non-cash earnings, and questions about dividend coverage highlight the importance of ensuring that accruals are converted into cash. For investors interested in the AI ​​infrastructure theme, Oracle combines growth projections, partnerships such as OpenAI, and execution and balance sheet risks that may require closer scrutiny beyond the headline articles.

Oracle’s growing AI backlog and heavy spending on data centers suggest that the real story lies in how its future cash flows weigh against its risks. Start with Oracle’s DCF valuation analysis.

The three AI stocks in this article are just a starting point. A complete artificial intelligence/AI stock screen reveals an additional 663 companies related to semiconductors, cloud, LLM, and broader ChatGPT construction that may have equally compelling narratives. Use Simply Wall St to identify and analyze the specific catalysts, business models, and risk profiles that fit your highest-conviction AI ideas, allowing you to focus on opportunities that match your criteria.

Take control of your investment journey

If Baidu or one of these companies has caught your attention, register for free on Simply Wall St and add your company to your watchlist to monitor stock price relative 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.

Looking for fresh alternatives before others?

AI stocks move quickly, and the next breakout opportunity often goes unnoticed for now. Look at fresh data-driven ideas in front of the crowd and consider acting on them while they don’t yet have widespread support.

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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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