AI Stocks Riding Europe’s Factory Recovery Through Software And Cloud Demand

Euro area manufacturing is showing its strongest growth in four years, and that renewed industrial demand is shining a spotlight on the chips, software and cloud tools that power AI. As factories upgrade and companies look for productivity gains, attention turns to stocks tied to the ChatGPT and AI build out. This article highlights 3 AI related stocks from our screener that many investors are watching closely.

The three AI related stocks below are only a starting sample, and the full screen surfaced 15 more companies with equally compelling ChatGPT and AI build out stories that are not covered here. To size up that wider opportunity set, head into the Artificial Intelligence/ AI Stocks screener to identify, filter and analyze the highest conviction plays across chips, software and cloud.

Overview: Cerillion is a telecom software company that supplies billing, charging and customer management systems. It now weaves AI into those tools through products like its Business Insights analytics platform and Enterprise Product Catalogue to help operators automate, personalise and predict customer and revenue outcomes. That puts Cerillion directly in the AI software layer of the telecom stack rather than on the chip or hardware side.

Operations: Cerillion generates most of its revenue from Software at £22.6 million and Services at £17.8 million, with a smaller £2 million contribution from Other activities.

Market Cap: £281 million

Cerillion offers exposure to the AI build out inside telecom operations rather than at the interface of chatbots. Its Business Insights and AI enabled Enterprise Product Catalogue are already embedded in BSS/OSS workflows, and the company is now showcasing Agentic AI projects with tier one partners, which could deepen that role if adoption broadens. At the same time, recent half year results showed revenue and earnings falling year on year, and the balance sheet leans on external borrowings, so execution on these AI projects needs to justify the spend. Strong margins and return on equity provide a financial cushion, but an important consideration is how far Cerillion can turn its AI toolkit into durable, recurring growth.

Cerillion’s telecom AI story is already live inside billing and customer systems, yet the real question is how that translates into sustained returns for shareholders. Get the full picture in the 4 key rewards and 1 important major warning sign

Build your own AI telecom shortlist

Cerillion and the two other AI related stocks in this article all came from the same Simply Wall St screen, but the real edge is setting filters that match how you like to invest. Use our customisable Screener to blend valuation, growth, balance sheet and risk metrics into your own shortlist, or lean on our curated Investing Ideas for ready made starting points.

Overview: Bytes Technology Group is an IT solutions provider that helps organisations buy, deploy and manage software, security, AI and cloud services, with a core focus on cloud hosted AI and machine learning platforms, AI enabled productivity and security subscriptions, and managed cloud infrastructure that supports LLM and wider AI application rollouts alongside more traditional hardware and licensing work.

Operations: Bytes Technology Group generates £220.6 million of revenue from its IT Solutions Provider segment, with most sales coming from customers in the United Kingdom alongside smaller contributions from Europe and the rest of the world.

Market Cap: £958.5 million

Investors looking at AI infrastructure may wish to consider how Bytes Technology Group plugs into everyday enterprise adoption of ChatGPT style tools, from cloud hosted AI platforms to security and productivity software subscriptions. The company combines high quality earnings and strong returns on equity with exposure to demand for AI and cloud services, while still pricing many contracts on more traditional IT terms. At the same time, margin pressure, reliance on external borrowing and shifting Microsoft incentive structures mean developments in AI and cloud need to be carefully executed. Dividend payments and board changes in 2026 also add context. A key consideration is how Bytes manages these opportunities and risks as AI workloads expand across its customer base.

Bytes Technology Group sits at the intersection of recurring software, AI workloads and cloud spending. See how that mix shows up in the 3 key rewards and 1 important warning sign and where the pressure points might quietly be building.

Overview: AdvancedAdvT is a London based software company focused on internet software and services, with a key link to the AI and ChatGPT theme through its AI based healthcare intelligence, compliance and accreditation platforms, intelligent process automation tools, and cloud based workforce management SaaS that streamline highly regulated healthcare workflows. Alongside these AI enabled products, it also provides broader business, financial management and human capital management software across the UK and other regions.

Operations: AdvancedAdvT generates £53.4 million of revenue from its Internet Software & Services business, all currently reported from the United Kingdom.

Market Cap: £231 million

AdvancedAdvT provides direct exposure to AI in healthcare, where its AI based compliance, accreditation and automation platforms are used by hospitals and care providers to handle complex rules and staffing at scale. Forecasts cited for the company indicate expectations of strong earnings growth around these software and AI offerings, even though the latest year combined higher revenue of £53.4 million with net income of £4.61 million and slimmer margins. A rich P/E multiple and a £5.6 million one off loss highlight that expectations are high and execution needs to be tight. In addition, a balance sheet funded entirely by external borrowing makes this a higher risk AI software stock where both the potential upside and the funding pressures may warrant close attention.

AdvancedAdvT’s AI healthcare push is growing on a fully debt funded balance sheet, with expectations already reflected in a rich P/E. Get the context and key pressure points in the 2 key rewards and 2 important warning signs

Curious About The Next Big Alternatives

Fresh stock ideas can move from quiet to flying once the crowd catches on. Use these themed screens while it matters and before momentum gets fully priced in, and consider acting sooner rather than later.

• Spot potential breakout cash generators early by scanning the 9 high quality undervalued stocks. Use it to find quality companies that still trade as if the story has not caught up.
• Target sturdy income streams while prices are still under the radar for now with the 5 dividend fortresses. Explore ideas before yields start dropping.
• Track where long term AI demand might quietly build by filtering infrastructure enablers using the 55 AI infrastructure stocks. Prepare for any broad momentum shift.

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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