In this article, we look at two London-listed stocks that are clear winners in the current AI boom. These are companies enjoying higher revenues and profits directly from AI-related activities and services.
We always hear London is bereft of technology companies. Although we can’t compare with the US in terms of the sheer size and depth of our technology companies and AI shares, these two stocks demonstrate that the UK is capable of fostering firms at the forefront of revolutionary technology.
Computacenter
Computacenter has become one of the London market’s more understated AI winners, with surging demand from hyperscale customers driving a first half well beyond the group’s own expectations.
The FTSE 100 technology and services provider said second-quarter trading came in ahead of expectations, following what it described as an excellent start to the year.
First-half adjusted pre-tax profit is now expected to be roughly double last year’s soft comparative of £81.5 million, and the group expects full-year results comfortably ahead of the analyst consensus of £313.7 million.
The engine of that growth is the AI infrastructure build-out. In North America, Computacenter reported even stronger-than-expected volume growth with hyperscale customers, lifting both its Technology Sourcing and Professional Services businesses.
The UK delivered excellent growth of its own, including further AI-related projects, while Germany posted good Technology Sourcing growth despite subdued services activity.
Strength in the second quarter built on a good first quarter, which was significantly ahead of the prior year, with Technology Sourcing revenue rising particularly strongly, driven by hyperscale demand in North America and the UK, as well as AI-related project completions.
Perhaps the clearest signal of what lies ahead is the order book. Computacenter’s committed product order backlog stood well ahead of the £7.1 billion recorded at the end of 2025, reflecting strong order intake through the half, orders already placed with vendors against non-cancellable customer commitments.
Management struck a note of caution on the tougher second-half comparative, but with hyperscalers showing little sign of slowing their infrastructure spending, Computacenter finds itself supplying the picks and shovels of the AI boom at considerable scale.
Half-year results are due on 8 September.
IQE
IQE has emerged as one of AIM’s clearest beneficiaries of the AI infrastructure build-out, with a string of contract wins underlining growing demand for the compound semiconductor wafers that sit at the heart of datacentre optical technology.
The Cardiff-based group this week secured a multi-year production order worth $14 million from a strategic global technology customer, to be manufactured at its Newport foundry. The order supports high-performance storage applications for AI and datacentre markets, and IQE said discussions with the customer are continuing on next-generation data communications technologies.
It follows June’s multi-year agreement with Tower Semiconductor for the supply of Indium Phosphide (InP) epiwafers, used in Tower’s silicon photonics platforms for optical connectivity in AI-driven datacentres. The deal includes minimum purchase commitments and resolves a long-running IP dispute between the two companies, with Tower granting IQE a royalty-free licence to its porous silicon patents.
InP is fast becoming IQE’s key growth engine. The material underpins the optical transceivers that shuttle data around hyperscale facilities, and the group expects accelerating demand to be a material driver throughout 2026 and beyond.
The AI tailwind was already evident in IQE’s full-year results. Photonics revenue rose 15% to £57.1 million in 2025, driven by AI and data centre markets alongside US defence programmes, even as weakness in wireless dragged group revenue down to £97.3 million. Adjusted EBITDA fell to £3.2 million on the lower revenue base.
Photonics is certainly an area to watch.
The picture for 2026 is markedly brighter. Q1 trading was in line with expectations, and IQE has guided to revenue growth of more than 20% this year with strong order book visibility into the second half, expected to deliver a high-single to low double-digit adjusted EBITDA outcome.