AI Stocks With Real Revenue Growth on the ASX

Artificial intelligence is no longer just a tech buzzword; it now cuts across semiconductors, software, cloud platforms and large language models such as ChatGPT. While inflation, energy prices and shifting central bank policies shape market sentiment, AI shares sit at the crossroads of these macro stories and long term digital transformation. The AI Stocks screener focuses on companies directly tied to this ChatGPT and AI build out, from chips to infrastructure to applications, helping you narrow a broad theme into a practical shortlist. In this article, you will see 3 stocks from the screener that highlight different ways to get exposure to AI.

Aura Consolidated Group (ASX:AXQ)

Overview: Aura Consolidated Group (ASX:AXQ) provides a digital safety platform for consumers and families, bundling credit monitoring, identity theft protection, online data removal, VPN and privacy tools, antivirus, password management, scam and spam call protection, and device security across Australia and the United States. It also offers child online safety services with parental controls, gaming and messaging insights, wellbeing scoring, and AI based monitoring, and supports these offerings with an Aura Intelligence platform and clinical research capabilities.

Operations: Aura Consolidated Group currently generates about US$192.5 million in revenue from Security Software & Services, all from Australia.

Market Cap: A$679.1 million

Aura Consolidated Group sits at the intersection of AI and consumer cybersecurity, with 31.3% revenue growth and a US$192.5 million topline showing that its bundled safety offering is gaining traction, even while the company is still reporting a loss of US$140.8 million and a highly negative Return on Equity. Recent hires, including a Global Chief Marketing Officer and a Chief AI Officer, signal a push to scale its Aura Intelligence platform and bring more AI driven features into its products, just months after a sizeable IPO that raised about A$145.2 million. At the same time, less than a year of cash runway, full reliance on external borrowing and a young, non independent board create a mix of promise and fragility that investors may wish to examine in more detail.

Aura Consolidated Group’s rapidly expanding US$192.5 million platform and new AI leadership hires raise an obvious question: is the opportunity significant enough to outweigh the cash runway and board risks flagged in the 1 key reward and 3 important warning signs (2 are major!)?

Xero (ASX:XRO)

Overview: Xero (ASX:XRO) runs a cloud based accounting platform that helps small businesses and their advisors handle bookkeeping, payroll, payments, tax, and reporting. It is supported by add ons like Planday for staff scheduling, Hubdoc for bills and receipts, Syft for AI backed reporting, and other specialist tools.

Operations: Xero generates about NZ$2.8b in revenue from providing online solutions for small businesses and their advisors across Australia, New Zealand, the United Kingdom, the United States, and other markets.

Market Cap: A$11.1b

Investors looking at AI linked software may want to note how Xero is wiring AI directly into the accounting workflows of small businesses, from Anthropic Claude integrations to its JAX platform and XeroForce no code AI agents. The company reports an 88% gross margin profile. Some investors may see a tension between the current valuation, various intrinsic value estimates, and the relationship between the price to earnings multiple and cash flow expectations. At the same time, funding entirely from external borrowings, a dip in net margins, and a relatively new management team mean Xero is not a simple story of growth at any price.

Xero’s high gross margins and AI roll out have many investors focused on the upside, but the real story may sit in how expectations stack up against the analyst forecasts for Xero and what that implies next.

Echo IQ (ASX:EIQ)

Overview: Echo IQ (ASX:EIQ) is an Australia based healthtech company that uses artificial intelligence to help clinicians identify structural heart disease earlier through its EchoSolv platform, which assesses risks such as aortic stenosis, diastolic dysfunction, and heart failure, supported by research collaborations including Mayo Clinic.

Operations: Echo IQ currently generates about A$0.1 million in revenue from the development of artificial intelligence software.

Market Cap: A$987.0 million

Echo IQ provides pure play exposure to AI in healthcare, with EchoSolv already being used in systems like Mount Sinai for severe aortic stenosis assessment and a Mayo Clinic collaboration aimed at extending its cardiac risk tools into oncology. Analysts expect very strong revenue growth from a small base and see price upside, even though the company is still loss making, has a negative return on equity and is forecast to remain unprofitable. This raises questions about funding and execution risk, particularly given reliance on external borrowings and a relatively new management team. The recent A$110 million equity raise and appointment of a seasoned CFO indicate Echo IQ may be preparing for a larger commercial push, particularly in the US. A key consideration for investors is whether any future growth will justify today’s rich P/B multiple and volatility.

Echo IQ’s accelerating US push, fresh capital and specialist focus on structural heart disease screening point to a bigger story that many investors may be missing, and the analyst forecasts for Echo IQ could reveal why expectations and funding risk might not line up the way you think

The three stocks in this article are only a starting point, and the full Artificial Intelligence/ AI Stocks screener on Simply Wall St surfaces 14 more companies with equally compelling AI narratives across chips, cloud, software and LLM infrastructure, all grouped inside the Artificial Intelligence/ AI Stocks screener. Identify and analyze the specific catalysts that matter most to you, from cash runway and profitability to AI exposure and valuation signals. This can help you focus on the highest conviction ideas within this theme.

Take Control of Your Investment Journey

If Xero 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.

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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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