Cerillion Stock and Two AI Software Names Worth Watching

Artificial intelligence stocks are sitting at the crossroads of powerful trends, from shifting central bank policies and energy market pressures to changing trade rules and inflation signals. While rates, growth and currencies move in different directions across regions, the companies that build chips, train large language models and run AI software and cloud infrastructure remain central to how this cycle plays out. This article uses an AI Stocks screener focused on semiconductors, software, LLMs, ChatGPT and cloud to filter that wide universe and highlight 3 stocks from the screener that many investors are watching closely.

Cerillion (AIM:CER)

Overview: Cerillion is a London headquartered software company that supplies telecom operators and subscription businesses with end to end billing, charging and customer relationship management systems, along with AI enabled product catalogues, analytics and digital customer experience tools across multiple regions.

Operations: Cerillion generates most of its revenue from Software at £22.6 million and Services at £17.8 million, with a smaller contribution from Other income of £2.0 million.

Market Cap: £311.7 million

Cerillion sits at the intersection of telecom billing systems and AI driven automation, which is why investors watching AI infrastructure often monitor the company. Analyst forecasts indicate earnings growth of 15.26% a year and revenue growth of 14.2%, alongside high current and projected ROE above 22%, which may indicate an efficient use of capital. An interim dividend increase highlights a focus on shareholder returns. At the same time, funding that relies fully on external borrowing and signs of high non cash earnings raise questions about risk and earnings quality. Recent product releases related to Agentic AI, Omantel’s digital transformation contract and the company’s industry positioning suggest there may be more to consider than headline valuation multiples alone.

Cerillion’s AI powered telecom engine, high ROE and analyst growth forecasts hint at more going on beneath the headline multiples. However, funding and non cash earnings leave a big question mark that the 2 key rewards and 1 important major warning sign

Bytes Technology Group (LSE:BYIT)

Overview: Bytes Technology Group is a Leatherhead based IT reseller and services company that helps organisations source and manage software, security, AI and cloud solutions, while also supplying hardware like servers and laptops and providing training and consulting support across the UK, Europe and internationally.

Operations: Bytes Technology Group generates all of its reported revenue of £220.6 million from its IT Solutions Provider segment, with £211.9 million coming from the United Kingdom and smaller contributions from Europe and the rest of the world.

Market Cap: £986.5 million

Bytes Technology Group sits at the centre of how customers adopt AI, cloud and cybersecurity, with a single IT Solutions Provider segment that is tightly linked to Microsoft and other large vendors. Revenue of £220.6 million and net income of £51.3 million, alongside very high reported ROE and a long track record in software licensing and services, may appeal if you are looking for an established way to get exposure to recurring renewals, AI upsell and higher margin security work. Yet guidance for flatter profits, pressure on margins from lower margin public contracts and reliance on external borrowing mean the story is more nuanced than a simple growth label suggests, particularly as the company resets costs and reshapes its leadership.

Bytes Technology Group’s recurring renewals and AI upsell story looks powerful, but the reset in costs and margins can be easy to gloss over, so the 3 key rewards and 1 important warning sign might change how you see the risk reward balance

AdvancedAdvT (AIM:ADVT)

Overview: AdvancedAdvT is a London headquartered software company that provides business management, healthcare compliance and human capital management solutions, alongside financial management tools, workforce management services and a machine learning based process automation platform across the UK, Europe, North America and other regions.

Operations: AdvancedAdvT generates all of its £53.4 million in revenue from Internet Software & Services in the United Kingdom.

Market Cap: £211.2 million

AdvancedAdvT sits in an interesting corner of the AI stocks universe, combining business and healthcare software with a machine learning automation platform that can help customers streamline workflows rather than just talk about AI. Forecast earnings growth of 32% a year and revenue growth that remains positive give the company a growth angle. However, profit margins have compressed from 25.1% to 8.6% and net income has fallen to £4.61 million despite revenue of £53.4 million. A high P/E multiple, one off losses of £5.6 million and full reliance on external borrowing raise questions about resilience that are not always obvious from headlines or simple valuation ratios.

AdvancedAdvT’s growth story looks like it is stalling just as its machine learning platform could be gaining traction, and the real tension between that high P/E, compressed margins and external borrowing only comes through in the analysis report for AdvancedAdvT

The three stocks here are just a starting point, and the full Artificial Intelligence/ AI Stocks screener surfaced 15 more companies with equally compelling ChatGPT, semiconductor, software and cloud narratives via the Artificial Intelligence/ AI Stocks screener. Use Simply Wall St to identify the specific catalysts, filter for the AI, LLM and transformation narratives that matter to you, and analyze which opportunities appear to be the highest conviction fits for your portfolio.

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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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