3 Australian AI Stocks With P S Under 1 To Watch

The Federal Reserve keeps lifting interest rates as big tech pours money into AI infrastructure, which puts artificial intelligence at the center of global policy debates and corporate budgets. That mix creates a window for Australian AI related stocks that appear inexpensive on traditional valuation screens. This article walks through three AI shares from our screener that may merit a closer look at this time.

The three Australian AI stocks below are a sample from a wider hunting ground, and the full screen surfaced 0 more businesses with similarly interesting AI stories that are not covered here.

If you want to identify and analyze a broader set of ChatGPT related chip, software and cloud opportunities while they still look cheap on traditional metrics, head straight to the Undervalued Artificial Intelligence/ AI Stocks screener.

COSOL (ASX:COS)

Overview: COSOL provides AI enabled asset lifecycle and enterprise intelligence services that help asset heavy industries manage infrastructure, maintenance, and data.

Operations: COSOL generates about A$54.9 million from Australian consulting, A$30.7 million from Asset Management Services, and A$12.9 million from the Americas, with A$84.6 million coming from Asia Pacific overall.

Market Cap: A$34.6 million

COSOL integrates AI directly into asset heavy operations, using its AI asset lifecycle and enterprise intelligence tools to support predictive maintenance and data governance. The stock currently appears inexpensive compared to software peers and is connected to real world AI use cases in resources, utilities, and infrastructure. Attention now turns to how one unresolved shift in profitability will influence the payoff from those AI platforms.

That hinges on whether COSOL’s current margins and cash generation can support its AI push. Check the COSOL financial health report for what the balance sheet is really signalling.

CAR Group (ASX:CAR)

Overview: CAR Group runs online vehicle marketplaces and AI powered automotive data services that support pricing, inspections, and targeted advertising across multiple countries.

Operations: CAR Group generates about A$517.6 million from Australia, A$326.9 million from North America, A$252.9 million from Latin America, A$144.8 million from Asia, and A$11.2 million from investments.

Market Cap: A$8.8b

CAR Group matters for this AI screener because its marketplace model is increasingly wired into machine learning tools that interpret vehicle data, automate inspections, and personalise how buyers and sellers are matched.

"Per-share compounding as Encar / webmotors / US non-auto scale, intrinsic, continuous."

The real tension for investors is whether one gradual shift in how that AI driven data engine is monetised helps or hurts future pricing power.

That pricing power question is exactly what the full narrative for CAR Group unpacks, including how CAR Group’s data flywheel could be accelerating faster than headline metrics suggest.

Ai-Media Technologies (ASX:AIM)

Overview: Ai-Media Technologies delivers AI powered captioning, transcription, and translation services through its LEXI suite for live and recorded video.

Operations: Ai-Media generates A$60.2 million from Internet Software & Services, with A$41.4 million from North America and the remainder across APAC and EMEA.

Market Cap: A$49.4 million

Ai-Media Technologies matters in this screener because its LEXI tools plug AI directly into live speech, turning audio into captions and translations for broadcasters, corporates, and educators worldwide.

"The transition from human-in-the-loop services to an AI native workflow with the LEXI suite and encoders is increasing the share of higher margin SaaS in the mix, which directly supports gross margin and EBITDA outcomes."

What really moves the needle now is whether a shift in customer adoption speed can carry those AI driven economics into sustained profitability.

That potential hinge point is exactly what the full narrative for Ai-Media Technologies unpacks, revealing how LEXI’s accelerating shift to higher margin SaaS could reshape risk and upside.

Seeking Fresh Alternatives Beyond AI?

New themes keep breaking out while older ideas lose momentum. Use these curated stock lists before the crowd catches on and the data goes stale. Get in early.

• Capture potential turnaround stories with strong balance sheets by scanning the curated list of solid balance sheet and fundamentals (12 results) before prices reflect the underlying strength.
• Hunt for potential income workhorses using the hand picked 4 dividend fortresses while yields remain attractive and payout histories are still under the radar for now.
• Review the focused 39 power grid technology and infrastructure stocks for companies linked to power infrastructure and grid-related projects.

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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