AI Stocks To Watch Through UK Software And Telecom Growth

Artificial intelligence stocks sit at the crossroads of powerful themes that markets are watching right now. Global inflation, higher bond yields and strong demand for semiconductors and AI servers are shaping where capital flows. An AI stocks screener that focuses on chips, software, large language models, ChatGPT and cloud providers helps you cut through a crowded field and concentrate on companies that are directly linked to this trend. In this article you will see 3 stocks from the Artificial Intelligence screener that can help you think about how to build exposure to this theme with more focus.

Cerillion (AIM:CER)

Overview: Cerillion is a London based software company that provides billing, charging and customer relationship management systems to telecom operators and subscription businesses worldwide, offering pre packaged SaaS platforms for everything from quad play consumer services to smart city infrastructure. Its product suite spans customer experience, charging, billing, network inventory and AI powered analytics, which helps clients launch, price and manage complex digital services across 5G, Wi Fi and cloud environments.

Operations: Cerillion generates most of its revenue from Software at about £22.6 million, followed by Services at about £17.8 million, with Other income of about £2 million.

Market Cap: £292.5 million

Cerillion gives you exposure to the telecom side of AI, with tools that help service providers orchestrate and monetise digital services using AI driven product catalogues and analytics. The company currently trades on a P/E similar to peers. Analysts expect faster earnings and revenue growth than the wider UK market, and Simply Wall St’s DCF suggests the share price sits close to its estimated fair value. Profitability metrics like high return on equity and strong margins are attractive, although recent half year results showed lower sales and earnings and there are questions around high non cash earnings and reliance on external funding. For investors who want AI exposure anchored in real telecom workloads, that mix of strengths and open questions deserves a closer look.

Cerillion’s telecom AI story looks tightly run on the surface, yet the real interest sits where fair value, margins and those non cash earnings intersect. Get the full context in the 4 key rewards and 1 important major warning sign

Bytes Technology Group (LSE:BYIT)

Overview: Bytes Technology Group is a UK based IT reseller and services company that helps organisations buy, secure and manage their software, cloud and AI tools, while also supplying hardware like servers and laptops. It wraps these products with consulting, training and cybersecurity services so customers can run their IT, data and AI workloads more efficiently across on premise and cloud environments.

Operations: Bytes Technology Group generates essentially all of its revenue as an IT solutions provider, with about £220.6 million in sales, primarily from the United Kingdom at about £211.9 million.

Market Cap: £931.5 million

Bytes Technology Group sits at the heart of how companies actually adopt AI, cloud and security tools in day to day operations. It has high quality earnings, robust net margins and strong return on equity. The most recent year showed a decline in net income and a slight dip in profit margins, while guidance points to flat operating profit as higher tech and bonus costs reset. At the same time, the company is investing in AI focused software, cybersecurity and a new customer marketplace, and it has approved dividends and a sizeable share buyback. That mix of attractive fundamentals, execution risk around public sector contracts and funding reliance, and a P/E below peers means the real story sits in the details you have not seen yet.

Bytes Technology Group looks like an IT reseller, yet its mix of AI software, cybersecurity and a new marketplace could be masking something much bigger. See how the analysis report for Bytes Technology Group reshapes the risk reward story.

AdvancedAdvT (AIM:ADVT)

Overview: AdvancedAdvT is a London based software company that runs a portfolio of business and healthcare platforms, from financial management and healthcare compliance tools to workforce and human capital management systems, many delivered as cloud based SaaS with AI powered healthcare compliance and accreditation capabilities.

Operations: AdvancedAdvT generates about £53.4 million in revenue from Internet Software and Services, all of it currently reported from the United Kingdom.

Market Cap: £224.4 million

AdvancedAdvT sits at the intersection of AI and critical business software, with AI based healthcare compliance tools and cloud workforce platforms that tie directly into the screener’s focus on real world AI adoption. Forecasts point to earnings growth of about 32% a year and revenue growth ahead of the wider UK market, yet the stock trades around 20% below estimated fair value and carries a high P/E. This suggests investors are still weighing its potential. Profit margins have compressed, net income has fallen despite higher revenue, and a large one off loss plus full reliance on external borrowing raise questions about earnings quality and resilience. The tension between that growth profile, funding risk and valuation is where the opportunity may sit for patient AI focused investors.

AdvancedAdvT’s AI and SaaS story looks like a growth engine that the market has not fully joined the dots on yet. Consider its earnings profile, funding questions and valuation together with the analyst forecasts for AdvancedAdvT to see what might be missing

The three Artificial Intelligence stocks here are only a starting point, since the full Artificial Intelligence/ AI Stocks screener surfaces 15 more companies with equally compelling AI and ChatGPT linked narratives. Use Simply Wall St to identify and analyze the specific catalysts, from semiconductors and LLM software to cloud and transformation projects, so you can filter for the highest conviction AI plays that best fit your approach.

Take Control of Your Investment Journey

If AdvancedAdvT 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.

Curious About What You Might Be Missing?

Fresh ideas can move quickly, with breakouts forming, momentum building and stories flying under the radar for now. Before the best entry points get caught by the crowd, act now.

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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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