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AI Stocks To Watch As Higher Rates Push Demand For Enterprise Software

Simply Wall St · 1d ago

German 10Y Bund yields sit at multi year highs as investors reassess how long tighter money might stick. Higher funding costs keep pressure on many sectors, yet demand for productivity tools like artificial intelligence keeps growing. That mix is pushing more attention toward AI stocks that can help companies do more with less. This article highlights three AI screener stocks that capture that theme right now.

The three AI stocks covered below are only a small sample of what is out there, and the full screen surfaced 205 more companies with equally compelling AI narratives that are not included in this article. To go deeper and focus on the ideas that fit your own criteria, head straight into the Artificial Intelligence/ AI Stocks screener to identify, filter, and analyze the AI stocks that best match your conviction level.

Adobe (ADBE)

Adobe is best known for Creative Cloud tools like Photoshop and Premiere Pro, and Experience Cloud for marketers. It now weaves generative AI directly into those platforms through Firefly for image and text-to-image creation, AI-assisted editing, and content personalization. While Adobe is diversified across creative, experience, and publishing products, its AI features are embedded into this broader suite rather than being a separate, narrow product line. The company has a market cap of about US$114.9b, which puts it among the larger global software companies in the AI and creative software space.

Investors watching the ChatGPT and generative AI wave may pay attention to Adobe because it is not trying to compete with standalone AI tools from scratch. Instead, it is wiring Firefly and agentic AI into the creative and marketing software that professionals and enterprises already use every day. The company is aiming to turn that usage into AI-first annual recurring revenue, which recently passed US$500 million, while still running a business with strong cash generation and high returns on equity. The main risk is that AI investments and a shift toward more freemium access could pressure margins or slow near-term growth. There is also the chance that cheaper or open-source tools could affect pricing power. For investors willing to look past those concerns, Adobe offers a mix of deep AI integration, entrenched customer relationships, and a valuation that some analysts see as out of sync with its current earnings quality and AI monetization progress.

Adobe’s push to turn Firefly and agentic tools into AI first recurring revenue is gaining attention, yet many investors may still be pricing it like a mature software utility. For a sharper view of how that AI monetisation story lines up with quality, cash generation, and the valuation debate, go straight to the analysis report for Adobe

ADBE Discounted Cash Flow as at Aug 2026
ADBE Discounted Cash Flow as at Aug 2026

ServiceNow (NOW)

ServiceNow runs a cloud platform that helps large organisations manage digital workflows across IT, security, HR, customer service and more, and increasingly layers in AI to automate those processes. Its strongest link to the AI/ChatGPT theme is this AI driven workflow engine, where products like ServiceNow Impact, Automation Engine and App Engine use predictive and generative models to recommend actions and trigger AI agents across enterprise systems. The business currently reports all of its roughly US$14.7b in revenue under Internet Software & Services, and has a market cap of about US$143.1b.

ServiceNow is interesting if you are looking for AI beyond headline chatbots and into the plumbing that actually runs big companies. The AI platform already supports more than US$1b in AI related contract value, with management now talking about AI as a growth driver rather than a cost pressure. At the same time, net margins around 11% and a rich valuation leave little room for missteps if AI workflows or security products do not scale as planned. For investors who think AI infrastructure and governance will matter as much as the models themselves, ServiceNow offers a way to get exposure to that theme while the debate over whether it is just another software stock or a digital utility is still unresolved.

ServiceNow’s AI workflow engine is already tied to roughly US$1b in AI related contract value, yet many investors may still treat it like generic software. Get a clearer read on how that story, its margins, and the current pricing debate fit together in the analyst forecasts for ServiceNow

NYSE:NOW Revenue & Expenses Breakdown as at Aug 2026
NYSE:NOW Revenue & Expenses Breakdown as at Aug 2026

Oracle (ORCL)

Oracle is a long established enterprise software and database company that now embeds AI directly into its Oracle Cloud Infrastructure, with hosted large language models, Digital Assistant, and GPU based training and inference services that power AI apps for big customers. Most of its revenue still comes from a broad cloud and software segment at about US$58.5b, with smaller contributions from services at roughly US$5.7b and hardware at about US$3.1b, so AI is an important growth driver rather than the whole story. The company has a market cap of roughly US$437.7b, putting it among the largest global software and cloud providers in the AI space.

Oracle may appeal to investors who want exposure to the physical backbone of the AI and ChatGPT boom rather than just front end apps. Its Oracle Cloud Infrastructure, AI Database, and embedded AI agents in Fusion and NetSuite are supporting high profile workloads such as OpenAI and healthcare deployments. This context provides one explanation for strong reported earnings growth and a P/E that sits below many software peers. The trade off is heavy spending to build data centers, plans to raise around US$40b in new funding, and concerns that free cash flow and dividends are under pressure while this build out runs. For investors comfortable with that balance sheet risk, the mix of AI related backlog, multi cloud partnerships, and current valuation may warrant closer consideration.

Oracle’s AI infrastructure story is accelerating, while its P/E still trails many software peers. See how that mix of earnings, AI exposure, and balance sheet pressure comes together in the analysis report for Oracle

NYSE:ORCL P/E Ratio as at Aug 2026
NYSE:ORCL P/E Ratio as at Aug 2026

Seeking Alternatives Before The Crowd?

Fresh stock ideas can move from quiet to flying once momentum builds. Use screeners while they are still under the radar for now and get in early.

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.