AI Stocks to Watch as Demand for Enterprise Software Keeps Building

Asia trade data now points to strong demand for AI related semiconductors, with Taiwan’s exports and trade surplus reflecting heavy interest in chips that power tools like ChatGPT. That puts AI stocks firmly on the radar for investors who do not want to miss where a lot of global tech spending is currently flowing. This article highlights three stocks from our AI screener that sit at the heart of this shift.

The three stocks covered below are just a small sample of this AI surge, and the full screen surfaced 62 more companies with equally compelling narratives that are not covered in this article. To identify your own highest conviction ideas, head straight into the Artificial Intelligence/ AI Stocks screener.

Trend Micro (TSE:4704)

Trend Micro is a long established cybersecurity company that secures endpoints, networks, cloud workloads and email for enterprises and consumers, and is now weaving AI into threat detection, incident response and risk management. It generates revenue across Japan (¥87,873 million), Asia Pacific (¥77,088 million), Europe (¥65,128 million) and the Americas (¥55,822 million), highlighting a broad global footprint. The company is sizeable, with a market cap of about ¥873.6b.

Trend Micro gives you exposure to AI where it directly meets real world security problems. The company is pushing AI powered tools like TrendAI and Vision One into multiyear enterprise contracts, while analysts still only expect mid single digit revenue growth and modest margin improvement, which keeps expectations grounded. At the same time, funding relies entirely on external borrowing and the board has relatively low independence, so governance and capital structure deserve a closer look. Recent earnings and the focus on dividends and buybacks add another layer for investors who care about both resilience and shareholder returns, but the full picture is more nuanced than the headlines suggest.

Trend Micro’s AI security story may look steady on the surface, yet the real tension sits where multiyear deals, funding through borrowing and board oversight intersect in the 2 key rewards and 1 important warning sign

Build your own AI security and software shortlist

Trend Micro and the other two AI stocks in this list all surfaced from a single Simply Wall St screen, but the real edge comes from setting your own rules. Use our customisable Screener to mix filters on valuation, growth, balance sheet strength, risks and dividends, or tap into any of our curated Investing Ideas.

WingArc1st (TSE:4432)

WingArc1st is a Japan based software company that helps businesses design, generate and manage forms and documents, digitize paperwork with AI powered OCR, and turn operational data into dashboards and analytics through platforms like Dr.Sum and MotionBoard. The company generates all of its ¥31,437 million in revenue from its Data Empowerment Business in Japan and has a market cap of about ¥108.8b.

WingArc1st sits at the intersection of AI, data analytics and form automation, which puts it in the slipstream of companies trying to clean up messy data and workflows. Investors get a business with solid profitability, high quality earnings, and revenue and profit growth that analysts expect to continue, yet priced below some industry peers. The trade off is a funding structure that leans on external borrowing and a limited analyst following, so the new multi year share buyback and recent earnings trends may matter more than usual when you weigh up the risk and reward story here.

WingArc1st’s solid profitability and Japan focused data business could be masking a bigger story around growth and capital returns. Get the full context in the analysis report for WingArc1st

Appier Group (TSE:4180)

Appier Group is an AI native SaaS company that helps enterprises run smarter advertising, personalise customer journeys and connect fragmented data through products like RETARGETING, AIQUA and its data cloud platforms. The business currently generates all of its revenue, about ¥46,487 million, from its AI SaaS segment, giving investors pure play exposure to applied AI software across sectors such as e commerce, finance and gaming. Appier Group has a market cap of roughly ¥99.1 billion.

Appier Group operates in the AI space, with earnings forecast to grow around 34% a year and revenue close to 19% a year, supported by guidance that raised Q2 2026 revenue and operating income targets after a strong Q1 update. That growth profile comes with trade offs. Net margins have slipped to 5.6%, funding depends fully on higher risk borrowing and the stock carries a relatively high valuation with a P/E above peers and the estimated fair level, following a year of share price underperformance. For investors evaluating AI driven growth and weighing the quality of earnings and the balance sheet against the current valuation, Appier Group warrants closer analysis.

Appier Group’s fast growing AI SaaS story, with raised 2026 revenue and operating income targets, sits against thinner margins, higher risk borrowing and a rich P/E. See how that balance plays out in the analysis report for Appier Group

Seeking Alternatives Before Momentum Flies

Fresh ideas move first, then momentum hits and the best entry points start dropping. Scan these under the radar lists before the crowd catches up and act now.

• Spot cash rich companies investors often overlook by running a focused screen on the list of solid balance sheet and fundamentals (40 results) while those fundamentals still sit under the radar.
• Hunt for income opportunities with yields that stand out using a curated set of 43 dividend fortresses before yield chasers send valuations higher.
• Track early trends in digital assets exposure through carefully filtered 20 cryptocurrency and blockchain stocks before sentiment shifts and the next phase of momentum develops.

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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