3 AI Stocks Retail Investors Are Watching For Software And Healthcare Growth

Simply Wall St · 1d ago

Artificial intelligence is moving fast, and the companies behind chips, large language models, cloud platforms and AI software are at the center of that shift. At the same time, many regions are reporting easing inflation pressures and more stable growth, which can help investors focus less on macro shocks and more on business fundamentals. The Artificial Intelligence / AI Stocks screener zeroes in on companies directly tied to the ChatGPT and broader AI build out. In this article you will see three stocks from that screener that can help you research targeted exposure to this theme.

Aura Consolidated Group (ASX:AXQ)

Overview: Aura Consolidated Group (ASX:AXQ) runs a digital safety platform that offers consumers and employees services such as credit monitoring, identity theft protection, data removal, VPN and privacy tools, antivirus, password management, spam call blocking and device security, along with child online safety features including parental controls, gaming safeguards and AI based app monitoring.

Operations: Aura Consolidated Group currently generates about US$192.5 million in revenue from Security Software & Services, all reported from Australia.

Market Cap: A$681.4 million

Aura Consolidated Group provides exposure to a pure play on consumer digital safety at a time when identity theft, scams and child online risks are front of mind. Revenue rose 31.3% over the past year to US$192.5 million. The company reported a loss of US$140.78 million and carries less than one year of cash runway, so funding risk is high. The recent IPO in July 2026 and new hires in senior product, AI and marketing roles indicate an aggressive build out of the Aura Intelligence platform. With a P/S of 2.5x that is below software peers, investors are weighing strong top line momentum against unproven profitability, governance inexperience and very illiquid shares.

Rapid revenue growth and a recent IPO have put Aura Consolidated Group on the radar. The key question is how its business, cash runway and risks stack up in one place with the analysis report for Aura Consolidated Group

Xero (ASX:XRO)

Overview: Xero (ASX:XRO) provides cloud based accounting, payroll, payments and compliance software that helps small businesses and their advisors manage invoices, bills, tax, cash flow and reporting in one place, supported by add ons like workforce scheduling, e invoicing and AI assisted analytics.

Operations: Xero generates about NZ$2.75b from providing online solutions for small businesses and their advisors, with revenue spread across Australia, New Zealand, the United Kingdom, the United States and other international markets.

Market Cap: A$12.82b

Investors looking at AI in real world workflows may find Xero interesting, because its core accounting platform already serves millions of small businesses and is steadily weaving in AI agents and co pilots to handle day to day finance tasks. High gross margins around 88% and guidance pointing to multi billion dollar revenue provide operating leverage potential. However, profitability remains modest at a 6.1% net margin and return on equity is currently low. Recent earnings have also been uneven, with profit growth over five years but a decline in the last year. In addition, a very high P/E and leadership turnover keep expectations and execution risk elevated, which is why detailed analysis matters here.

Xero’s high gross margins and growing AI tools hint at a stronger engine than its modest 6.1% net margin suggests. Before you decide it is fully priced, review the 2 key rewards and 1 important warning sign

ASX:XRO Earnings & Revenue History as at Aug 2026

Echo IQ (ASX:EIQ)

Overview: Echo IQ (ASX:EIQ) develops AI driven diagnostic tools that help cardiologists and other clinicians assess the risk of structural heart disease from echocardiograms. Its EchoSolv platform targets conditions such as aortic stenosis, diastolic dysfunction and heart failure, and is expanding into cardiac risk assessment for cancer patients.

Operations: Echo IQ currently generates about A$0.09 million in revenue from the development of artificial intelligence software.

Market Cap: A$1.17b

Echo IQ sits at the intersection of AI and healthcare, with a tiny A$91k revenue base, rising losses and a very high P/B multiple that signal both early stage risk and strong expectations. Analysts expect very large revenue growth and see upside to the share price. A fresh A$110 million equity raise in July 2026 extends the funding runway as the company builds out its EchoSolv platform. The new CFO brings three decades of medtech and capital markets experience, and the Mayo Clinic collaboration could validate Echo IQ’s technology in a demanding oncology setting. High share price volatility, an unprofitable profile and a relatively inexperienced management team mean this is a high risk AI stock that investors may want to understand in more depth.

Echo IQ’s tiny A$91k revenue and A$1.17b market cap point to big expectations that many investors may not have fully unpacked yet. See how the analyst forecasts for Echo IQ ties into its funding runway, volatility, and that Mayo Clinic link.

ASX:EIQ Earnings & Revenue Growth as at Aug 2026

The three Artificial Intelligence stocks in this article are just a starting point, since the full Artificial Intelligence/ AI Stocks screener flags 14 more companies that pair AI exposure with equally compelling business stories. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you, so you can focus on the highest conviction AI opportunities across chips, software, LLMs, and cloud platforms.

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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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