Investors are increasingly looking beyond mega-cap tech companies like Nvidia, Microsoft, and Alphabet to the next wave of AI beneficiaries. ServiceNow stands out with its AI-driven enterprise engine, making it a compelling long-term opportunity despite a recent stock decline of 30%. NOW stock trades at 65 times forward earnings, signaling potential value.

ServiceNow’s strategic focus on AI has led to the introduction of centralized tools like the AI Control Tower and agentic AI agents, boosting operational productivity. The company’s partnerships with firms like NTT DATA have expanded its market footprint, driving growth. Financially, ServiceNow reported robust third-quarter results, with subscription revenues up 21.5% year-over-year.

ServiceNow raised its full-year 2025 guidance, anticipating continued growth and operational leverage. Analysts expect EPS to rise by 36% year-over-year in fiscal 2025. Despite volatility, Bernstein SocGen and Citizens maintain positive ratings on NOW stock, with a consensus rating of “Strong Buy.” Analysts have an average price target of $225.02, suggesting significant upside potential.

Read more at Yahoo Finance: The AI Software Story ‘Isn’t Dead.’ Consider This 1 Stock to Buy for 2026 Now.