WEBULL
WebtradeDownload

PagerDuty And 2 Other AI Stocks To Watch

Simply Wall St · 2d ago

More expensive semiconductors are now feeding directly into higher inflation, according to recent data pointing to chip costs as one reason September consumer prices moved to 3.6%. When a key input gets pricier, investors often recheck which AI related stocks still look underappreciated. This article highlights three companies from a focused screener that filters for AI driven businesses currently priced below what their fundamentals may justify.

The three AI related stocks in this article are just a starting sample, while the full screen surfaced 47 more companies with equally compelling narratives that are not covered here. To identify and analyze the highest conviction ideas directly tied to the ChatGPT and AI build out, go straight to the Undervalued Artificial Intelligence/ AI Stocks screener.

PagerDuty (PD)

PagerDuty leans directly into the AI theme of this screener through its Operations Cloud. This platform uses AIOps and generative tools to help keep digital services running smoothly for large enterprises.

PagerDuty runs a digital operations platform that uses machine learning and generative AI to detect, correlate, and remediate incidents across software systems. It generates about US$494.7 million from software and programming, with a market value around US$1.26b.

For investors tracking how AI may reshape IT operations, PagerDuty offers a clear test case of what happens when automation starts to influence both customer workflows and pricing power.

"The accelerating adoption of AI-powered automation across IT operations is likely to commoditize incident response and real-time operations management, putting downward pressure on PagerDuty's pricing power and shrinking its core addressable market, which would cause future revenue growth to slow dramatically."

Much now hinges on whether one quiet shift in how customers pay for PagerDuty’s AI capabilities ultimately supports margins or steadily erodes them.

That pricing shift is exactly why the full narrative for PagerDuty digs into how PagerDuty could turn AI adoption, customer mix, and usage patterns into either squeezed margins or a stronger platform story.

NYSE:PD Revenue & Expenses Breakdown as at Oct 2026
NYSE:PD Revenue & Expenses Breakdown as at Oct 2026

Zoom Communications (ZM)

Zoom Communications runs an AI first collaboration platform that powers meetings, calls and customer interactions, with Zoom Revenue Accelerator and Zoom Contact Center tying the business directly to conversation intelligence. The firm generates about US$5b from internet telephony and is valued around US$28.6b.

Zoom Communications matters for this AI themed screen because its meeting, phone and contact center tools are gradually turning into a rich data engine where conversation intelligence and generative features can shape both customer retention and new revenue streams.

"Strong and accelerating adoption of AI powered features across Zoom, including AI Companion, custom AI Companion and ZoomMate, with paid monthly active users of Workplace AI features up 125% year over year and AI Companion paid MAUs up 184% year over year, supports a view that AI usage is now translating into both indirect monetisation through lower churn and upsell and direct monetisation through paid SKUs."

What happens to Zoom Communications’ earnings profile depends heavily on how one still unresolved pressure around future AI related costs and pricing plays out.

That unresolved cost question is exactly what the full narrative for Zoom Communications unpacks, explaining how accelerating AI adoption at Zoom Communications could influence both monetisation and long term earnings power.

NasdaqGS:ZM Earnings & Revenue Growth as at Oct 2026
NasdaqGS:ZM Earnings & Revenue Growth as at Oct 2026

Cerebras Systems (CBRS)

Cerebras Systems is a pure play on AI compute hardware, building wafer scale chips and CS 3 racks that power large language models and generative workloads. The business generates about US$680.7 million from semiconductors and carries a market value near US$34.8b.

Cerebras matters for this AI focused list because it sells the heavy duty infrastructure that lets ChatGPT style models run faster and cheaper, putting it squarely in the middle of the shift toward high speed inference for real world applications.

"In March 2026, AWS integrated Cerebras CS-3 systems directly into Amazon Bedrock, splitting inference into a Trainium3 prefill and a Cerebras wafer decode phase, yielding up to a 15x speed improvement over monolithic GPU setups."

What happens to Cerebras Systems’ earnings profile depends heavily on how one still unresolved pressure around future funding costs and capital intensity plays out.

Those capital questions are just the surface. The full narrative for Cerebras Systems shows how Cerebras Systems could turn funding demands into accelerating scale while detailing the key risks still masking that outcome.

NasdaqGS:CBRS Earnings & Revenue Growth as at Oct 2026
NasdaqGS:CBRS Earnings & Revenue Growth as at Oct 2026

Seeking Alternatives Before Momentum Flies

Fresh opportunities rarely stay quiet for long. By the time headlines catch up, early entry points can be gone. Scan these under the radar ideas while it matters and act now.

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.