Is This Beaten-Down AI Stock a Buy at Current Levels?

1 hour ago 1

John Ballard, The Motley Fool

Sat, May 23, 2026 astatine 7:20 AM CDT 4 min read

ServiceNow (NYSE: NOW) has been 1 of the hardest-hit names successful this year's rotation retired of software. Shares are down astir 60% from their anterior highs arsenic investors interest that artificial quality (AI) could disrupt endeavor software.

But the company's first-quarter results were solid, and absorption continues to framework ServiceNow arsenic the operating strategy that volition control, secure, and show AI agents. While determination are uncertainties astir the semipermanent interaction of AI connected the bundle market, I deliberation Wall Street is apt underestimating ServiceNow's worth to enterprises.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected a little-known company, called an "Indispensable Monopoly," providing the captious exertion Nvidia and Intel some need.

Continue »

Volatile banal charts with wealth shown successful the background.

Demand for ServiceNow's AI merchandise is increasing rapidly

There's nary mistaking ServiceNow's momentum heading into 2026. In the archetypal quarter, subscription gross grew 19% twelvemonth implicit twelvemonth to astir $3.7 cardinal connected a constant-currency basis. That bushed expectations and led absorption to rise its full-year outlook. ServiceNow present expects full-year subscription gross (adjusted for currency changes) to summation 20.5% to 21%.

These beardown results partially bespeak the request for Now Assist. The company's flagship AI merchandise is generating $1 cardinal successful yearly gross and is connected way to scope $1.5 cardinal by year-end. That maturation matters due to the fact that it speaks to ServiceNow's competitory position. Now Assist is being integrated into ServiceNow's automation engine, Action Fabric, efficaciously turning Now Assist into the AI encephalon down tasks crossed the platform.

In 2025, 91% of nett caller yearly declaration worth came from deals that included 5 oregon much products, spanning areas similar app development, income management, and security. Customers aren't conscionable experimenting with ServiceNow's AI -- they're expanding it crossed the enterprise.

Nvidia validates ServiceNow's accidental

This increasing adoption of its level shows that ServiceNow is well-positioned to go the orchestration and governance furniture for AI agents operating autonomously crossed the enterprise. Its collaboration with Nvidia adds value to its strategy.

At ServiceNow Knowledge 2026, Nvidia CEO Jensen Huang appeared connected signifier with ServiceNow CEO Bill McDermott. The companies unveiled Project Arc, an autonomous desktop cause for IT administrators and developers. Project Arc volition tally connected Nvidia's hardware, models, domain-specific skills, and software. This associated announcement with the AI spot person strengthens ServiceNow's presumption to go the operating strategy for agentic AI.

Read Entire Article