AI Stocks Gain Traction Amid Chip, Cloud, and Software Demand Surge

Artificial intelligence stocks are at the crossroads of powerful market forces, including inflation and interest rate debates, volatile energy prices, and varying global growth signals. Yet demand for chips, cloud, and software that support tools like ChatGPT and other AI applications continues to be a major focus for many companies and governments.

Roper Technologies (ROP) is a US-based group of software and technology businesses that focuses on niche markets such as healthcare, education, insurance, industrial measurement, and faith-based organizations. It generates about $4.7 billion from Application Software, $1.7 billion from Network Software, and $1.9 billion from Technology-Enabled Products, with software now the largest contributor to revenue.

Roper Technologies is attracting attention from AI-focused investors because a large part of its portfolio is vertical market SaaS that is already embedding AI into real-world workflows. The company's recent results showed revenue and EPS growth, raised guidance, and active buybacks, while management talks about more than $5 billion of future acquisitions to deepen that software mix.

The combination of AI exposure, recurring software revenue, and risk factors makes Roper a stock worth watching closely in this screener. Microsoft (MSFT) is at the center of the AI build-out through Azure, Copilot, and a mix of OpenAI and in-house models. This is backed by very high margins and earnings growth that has been in the mid-teens per year.

Allegro MicroSystems (ALGM) designs and sells sensor and power management chips that help control motion and manage energy in systems like electric vehicles, robots, factory equipment, and AI data center hardware. The company's magnetic sensors and power ICs are built into EV inverters, ADAS systems, robotics, and data center cooling.