3 British AI Stocks With Revenue Up To £221 Million

Export controls on advanced US chips to China have pushed artificial intelligence into the middle of global politics. That kind of pressure can keep attention on the critical role of semiconductors, cloud and software in the next wave of automation. For UK investors, that backdrop makes undervalued AI related stocks especially interesting. This article highlights three London listed opportunities from our screener that plug directly into this trend.

The three undervalued AI stocks covered next are only a starter set. The full screen on Simply Wall St surfaced 2 more London listed companies with equally compelling AI narratives that are not included in this article.

Head straight into the Undervalued Artificial Intelligence/ AI Stocks screener to identify, filter and analyze the AI related opportunities that best fit your conviction and risk tolerance.

Shearwater Group (AIM:SWG)

Shearwater Group is a small London based cybersecurity group that plugs into the AI theme through Mind Security, its artificial intelligence driven managed security service, alongside broader identity and access tools such as SecurEnvoy.

Services contribute about £33.1 million of annual revenue compared with £1.8 million from Software, so AI linked offerings currently sit within a much wider security services mix. The business has a market value of about £13.3 million.

For AI focused investors, Shearwater Group matters because it is using machine learning in frontline cyber defence rather than just selling generic security tools.

"Rising cybercrime, wider use of AI by attackers and tighter data regulation are prompting corporates and government departments to allocate more budget to cybersecurity."

What happens if one unseen pressure on Shearwater Group’s business model quietly reshapes how much of that extra spend actually reaches its margins?

If that margin squeeze risk is on your mind, the full narrative for Shearwater Group shows how Shearwater Group could still turn AI security demand into meaningful operating leverage.

Bytes Technology Group (LSE:BYIT)

Bytes Technology Group plugs into the AI theme as an IT solutions provider that helps enterprises roll out cloud based software, AI enabled security and digital workspace projects on top of its broader hardware and licensing business.

Bytes Technology Group generates about £220.6 million from its IT solutions provider activity and has a market value of roughly £1.0b.

For investors tracking how AI and cloud reshape day to day IT spend, Bytes Technology Group offers a way to watch that shift filter through real enterprise budgets.

"The expansion of their cloud base in public and corporate sectors and strategic focus on AI-powered software products suggests potential for significant revenue growth as demand for these technologies increases."

What could really move the needle is how one quiet change in incentives and contract mix ultimately feeds through to Bytes Technology Group’s margins.

That contract shift is exactly what the full narrative for Bytes Technology Group unpacks, showing how Bytes Technology Group’s AI and cloud engine could accelerate while old incentive structures quietly fade.

Satsuma Technology (LSE:SATS)

Satsuma Technology is a London based AI software developer focused on subnet infrastructure that lets teams build and run autonomous AI agents tied into LLM and tokenized subnet deployments. It reported about £0.1 million in computer graphics revenue in the UK and has a market value near £23.4 million.

Satsuma Technology gives direct exposure to AI agent infrastructure. Its subnet platform connects autonomous agents, LLM workflows and alpha tokens in a single toolkit. Revenue remains small and losses are heavy, so any payoff from that AI stack now depends on how a currently unseen pressure on capital and liquidity ultimately resolves.

That capital squeeze is exactly why the 1 key reward and 4 important warning signs (4 are major!) could clarify where Satsuma Technology’s AI agent ambitions and its funding reality start to diverge.

Curious About Alternative Opportunities Next?

Fresh ideas move first, and the strongest breakouts often get caught by early screeners while they are still under the radar for now, so do not delay and get in early.

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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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