AI Supply Chain Stocks With Recurring Revenue Worth Watching

Tariffs, trade barriers and fragile shipping routes are reshaping how goods move around the world, yet they are also creating new demand for AI, automation and software that can keep supply chains running. Instead of just thinking about what this means for exporters or manufacturers, consider where the pressure points are that require better data, smarter routing and more efficient warehouses. This article looks at three stocks tied to AI and automation in supply chain and logistics that are exposed to these news driven shifts, and explains how each one could be helped or hurt by the current trade set up.

Five9 (FIVN)

Overview: Five9 provides cloud based customer experience software that uses AI agents, automation and analytics to help companies run contact centers across phone, chat, email and social channels, serving sectors such as banking, retail, healthcare and technology.

Operations: Five9 generates about US$1.17b in revenue from Internet Software & Services, with roughly US$1.04b from the United States and US$134.8m from international markets.

Market Cap: US$1.77b

Five9 sits at the intersection of AI, automation and customer service at a time when trade barriers and complex supply chains are pushing logistics and shipping companies to lean on smarter, always on support. Its AI driven CX platform, growing enterprise AI bookings and deep partnerships with groups like Salesforce and Google Cloud give it a foothold in workflows that matter when trade routes are disrupted or compliance rules change. At the same time, investors need to weigh a relatively high P/E, a funding mix dominated by external borrowing, and leadership changes plus insider selling in 2026. The combination of strong AI momentum, recent profitability, and these warning flags makes Five9 a stock that may warrant closer attention ahead of the next set of results on August 6, 2026.

Five9’s AI push and recent profitability may look compelling on the surface, yet the mix of external funding and leadership shifts could be masking the real risk reward trade off. Review the 3 key rewards and 3 important warning signs

Karooooo (KARO)

Overview: Karooooo runs a mobility software platform that helps businesses track vehicles, manage fleets, coordinate field workers and handle last mile deliveries using telematics, video tools and logistics software across South Africa and multiple international regions.

Operations: Karooooo generates about ZAR 5.17b in revenue from Cartrack and ZAR 596.21m from Karooooo Logistics.

Market Cap: US$1.96b

Karooooo sits in the path of trade and tariff disruption because its fleet management and telematics tools help companies cut fuel, routing and compliance costs when supply chains are being rerouted through more complex and expensive channels. The stock combines recurring revenue, high customer retention and a 28.7% ROE with tradeoffs such as a premium P/E, pressure on margins and a dividend that is not fully covered by free cash flow. For investors who care about how rising trade barriers could influence logistics spending on software, the key consideration is whether Karooooo’s growth, balance sheet risk and reliance on South Africa are in the right balance.

Karooooo’s mix of recurring revenue and 28.7% ROE looks powerful, yet the premium P/E and cash flow strain on its dividend raise harder questions. For a more detailed breakdown, see the 2 key rewards and 1 important warning sign

Technology One (ASX:TNE)

Overview: Technology One develops and supports enterprise software that helps governments, universities, healthcare providers and other organisations manage finance, HR, assets, students and supply chains across a single integrated platform in Australia and overseas.

Operations: Technology One generates about A$435.5m from Software, A$97.8m from Corporate and A$98.0m from Consulting.

Market Cap: A$9.36b

Technology One is closely linked to the AI and automation theme because its ERP and supply chain tools sit at the core of how public sector and regulated industries handle compliance, procurement and logistics when trade rules keep changing. Recurring SaaS revenue, high ROE and disciplined R&D spending together indicate a high quality compounder, while the rich P/E and reliance on external borrowing mean expectations are already demanding. With recent earnings and dividends supporting the story, and leadership reshaping roles around regulated industries and AI, investors who focus on software that may benefit from rising trade complexity may find Technology One worth a closer look beyond the headlines on tariffs and rerouted supply chains.

Technology One’s rich P/E and recurring SaaS story suggest that the market may still be missing how its core ERP and supply chain position fits into rising trade complexity. Read the analysis report for Technology One

The three stocks in this article are only a sample of the opportunity. The full AI and Automation in Supply Chain & Logistics screener surfaces 35 more companies that share similarly compelling AI, automation and supply chain narratives. Use Simply Wall St to identify and analyze the exact catalysts, financial health and storylines that matter to you so you can focus on the highest conviction ideas in this theme.

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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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