TCW funds released its third-quarter 2025 investor letter for the TCW Concentrated Large Cap Growth Fund, reporting a +4.11% return, lagging behind the Russell 1000 Growth Index, which returned +10.51%. The fund’s top five holdings for 2025 were highlighted, including ServiceNow, Inc. (NYSE:NOW), which saw a one-month return of -4.95% and closed at $152.59 per share on December 24, 2025. ServiceNow, Inc. (NOW) has been performing well, with growth in cRPO and subscription revenue, despite concerns over its exposure to the U.S. Federal government.

ServiceNow, Inc. (NYSE:NOW) is not among the 30 most popular stocks among hedge funds, with 104 hedge fund portfolios holding shares at the end of the third quarter. The company reported third-quarter subscription revenues of $3.299 billion, showing a 20.5% year-over-year growth in constant currency. While ServiceNow, Inc. (NYSE:NOW) has potential as an investment, some AI stocks may offer greater upside potential and less downside risk. Investors looking for undervalued AI stocks can explore opportunities detailed in a free report.

Read more at Yahoo Finance: Should You Be Bullish on ServiceNow (NOW)?