NVIDIA Heads These 3 Profitable AI Stocks To Watch

Global markets are watching big tech earnings this week to see whether heavy AI spending is turning into real revenue. That spotlight puts profitable AI builders in a different category from cash burners. Investors who care about earnings as much as hype are starting to focus on companies already using AI to generate cash today. This article breaks down three such stocks from our screener that fit that profile.

The three profitable AI stocks highlighted below are only a starting sample. The full screen surfaced 36 more businesses using AI in ways that build equally compelling narratives not covered here. To identify your own highest conviction ideas, head straight into the Profitable AI Stocks screener to filter and analyze the full profitable AI universe.

NVIDIA (NVDA)

NVIDIA is widely seen as a leader in profitable AI, with its data center GPUs and software stack powering the heavy lifting behind many large AI workloads. Its gaming and automotive segments remain meaningful but secondary contributors.

NVIDIA Corporation runs two main operations. Compute & Networking, which includes its data center AI hardware and software platform, generates about US$275.4b in revenue, while the Graphics arm adds roughly US$27.6b. That AI engine supports a market capitalization of approximately US$5,170.6b.

"Uptake of an open-source/cheaper/better platform than Nvidia's CUDA would heavily undermine Nvidia's moat and enable any sizeable firm to directly engage semiconductor manufacturers, such as TSMC, to produce their own chips, stealing away Nvidia's high margin products."

The entire profitable AI story for NVIDIA ultimately hinges on how one quiet shift in customer behavior affects the durability of those margins.

That margin question sits at the center of the full narrative for NVIDIA, so read the full narrative for NVIDIA to see how its moat and cash engine could be decoupling expectations.

Infomart (TSE:2492)

Infomart runs B2B e-commerce platforms in Japan that replace manual paperwork with digital invoicing, ordering, contracts, and storage, with its AI-OCR invox tool using machine learning to read faxes and PDFs. The B to B-PF FOOD unit generates about ¥12.4 billion and B to B - PF ES about ¥7.4 billion of revenue, supporting a market value near ¥200 billion.

Infomart plugs AI directly into invoices, orders, and workflows through invox, monetising automation instead of selling abstract AI promises. Earnings growth has been strong and margins are improving, yet a rich 89.1x P/E and reliance on external borrowing leave the story highly sensitive to what happens when the next capital allocation decision tests that AI-first plan.

That test is already forming for Infomart, so step into the 2 key rewards and 2 important warning signs (1 is major!) while that 89.1x P/E and leverage story is still taking shape.

Palantir Technologies (PLTR)

Palantir Technologies uses its Gotham, Foundry, and Artificial Intelligence Platform to help governments and companies turn complex data into operational decisions, with government bringing in about US$3.2b and commercial customers about US$2.9b of revenue on a business now valued near US$447b.

Palantir Technologies fits this profitable AI screen because its enterprise AI platform is already embedded in real workloads, and investors are watching how that cash engine scales from here.

"But the balance sheet tells a different story: the company has zero debt and tons of cash, so that model rewarded it heavily and gave a fair value close to $925."

What happens if a single assumption about the durability of that AI-driven earnings ramp or its rich P/E multiple quietly starts to crack?

If that assumption shift is what could really move Palantir Technologies, read the full narrative for Palantir Technologies to see whether the current multiple masks accelerating or stalling momentum.

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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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