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AI Stocks With High ROE That Retail Investors May Want To Research

Simply Wall St · 1d ago

Artificial intelligence is reshaping how companies handle everything from customer service to chip design, while higher borrowing costs, sticky inflation and volatile energy prices keep investors on their toes. The AI Stocks screener focuses on businesses directly linked to this shift, including semiconductors, software, large language models, ChatGPT related tools, cloud and broader transformation plays. It helps investors cut through market noise and identify stocks tied to specific AI activity rather than vague marketing stories. In this article, you will see three stocks from the screener that may merit closer research.

Cerillion (AIM:CER)

Overview: Cerillion is a London based software company that supplies billing, charging and customer relationship management platforms to telecom operators and subscription businesses worldwide, helping them bundle services, manage customer lifecycles and handle complex tariffs across mobile, broadband, TV and smart city networks.

Operations: Cerillion generates most of its revenue from Software at £22.6m, followed by Services at £17.8m and Other income at £2.0m.

Market Cap: £301.3m

Cerillion sits at the intersection of telecom infrastructure and AI, with tools like its Enterprise Product Catalogue and Business Insights platform using AI to help clients design offers and analyse usage data. The stock currently trades only slightly below a discounted cash flow estimate. Forecast double digit earnings and revenue growth, a high ROE above 20% and healthy profit margins are cited as indicators of a well established business model. At the same time, recent results showed sales and earnings for the half year to March 2026 both down, and analysts flag high non cash earnings and reliance on external borrowing as key risks. Combined with the recent focus on agentic AI at industry events, this positions Cerillion as a company that may attract closer attention from AI focused investors.

Cerillion’s AI story, high ROE and healthy margins look appealing, yet the mix of high non cash earnings and external borrowing raises harder questions. Get the full picture in the 3 key rewards and 1 important major warning sign

CER Discounted Cash Flow as at Jul 2026
CER Discounted Cash Flow as at Jul 2026

Bytes Technology Group (LSE:BYIT)

Overview: Bytes Technology Group is a Leatherhead based IT reseller and services company that supplies software, security, AI and cloud solutions, along with hardware such as laptops and servers, to customers in the UK, Europe and other international markets, supported by training, consulting and software asset management services.

Operations: Bytes Technology Group generates £220.6m of revenue from its IT Solutions Provider segment, with about £211.9m from the United Kingdom, £5.0m from Europe and £3.7m from the rest of the world.

Market Cap: £943.1m

Bytes Technology Group provides exposure to AI, cloud and cybersecurity spending while still appearing sensibly priced on earnings and below an estimated fair value. The company combines high gross profit from renewals and upselling with a reported 63.2% ROE. Recent earnings have slipped and net margins have edged down, partly linked to higher technology costs and a tilt toward lower margin public contracts. Heavy use of external borrowing, a buyback programme and an unstable dividend record add extra moving parts. For investors weighing these factors against the flat profit guidance and execution risks around Microsoft incentives and headcount expansion, the details may matter more than the headlines.

Bytes Technology Group’s high ROE and renewal rich model suggest a story that the recent earnings slip does not fully explain. Get the context in the analysis report for Bytes Technology Group

BYIT Discounted Cash Flow as at Jul 2026
BYIT Discounted Cash Flow as at Jul 2026

AdvancedAdvT (AIM:ADVT)

Overview: AdvancedAdvT is a London based software group that provides business, workforce and healthcare compliance platforms, including AI based healthcare intelligence tools, to customers across the UK, Europe and North America, with a focus on cloud delivered workforce management and process automation solutions.

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

Market Cap: £224.4m

AdvancedAdvT sits firmly in the AI enabled software camp, with earnings forecast to grow 32.04% per year and revenue projected to rise 5% despite a tougher recent year where net income fell to £4.61m and margins compressed to 8.6%. The stock trades about 20% below an estimated fair value while still carrying a high P/E, which puts the focus on whether that growth materialises and whether one off losses and a low 3% ROE improve. In addition, the company has a funding structure built entirely on external liabilities and less than half the board is independent, so both the potential upside and the risk profile may warrant closer attention.

AdvancedAdvT’s high growth forecasts and compressed 8.6% margin hint at an earnings profile that could be mispriced. Explore how that connects to the funding structure and governance in the analyst forecasts for AdvancedAdvT

ADVT Discounted Cash Flow as at Jul 2026
ADVT Discounted Cash Flow as at Jul 2026

The three AI stocks covered here are only a starting point, with the full Artificial Intelligence/ AI Stocks screener surfacing 15 more companies that pair direct exposure to chips, LLMs, ChatGPT tools and cloud infrastructure with equally compelling AI narratives. Use Simply Wall St to identify, compare and analyze the specific catalysts that matter to you so you can focus on the AI stocks that best fit your highest conviction ideas.

Take Control of Your Investment Journey

If Bytes Technology Group or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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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.