The Impact of Artificial Intelligence on Tech Stocks
The emergence of artificial intelligence (AI) catalyzed an impressive surge in technology stocks; however, a notable shift occurred in 2026.
Wall Street began to acknowledge the potential obsolescence of certain software companies due to AI capabilities, triggering a sell-off that ultimately pushed the Nasdaq Composite into correction territory.
Nevertheless, this tumultuous market landscape presents unique opportunities for astute investors to acquire shares in well-established firms at advantageous valuations. Certain stocks have reached levels where they are considered compelling purchases.
Is AI poised to create the first trillionaire? Our research team has released an insightful report on a relatively obscure company, deemed an “Indispensable Monopoly,” supplying the critical technology required by titans like Nvidia and Intel.
Two prime examples are ServiceNow (NYSE: NOW) and Salesforce (NYSE: CRM). As of March 27, 2026, ServiceNow’s stock has plummeted by 35%, while Salesforce has witnessed a 32% decline. Here are compelling reasons to consider investing in these stocks.
Analysts on Wall Street harbor concerns regarding ServiceNow’s business model, perceiving it as vulnerable to AI disruption. The company’s core offering is a software platform designed to optimize workflow within organizations.
In an era dominated by AI, autonomous entities can perform tasks independently, potentially rendering ServiceNow’s solutions superfluous.
In response to this existential threat, ServiceNow has proactively integrated AI into its operations. The platform already aggregates data and insights related to customer workflows, and by leveraging this information within its proprietary AI models, ServiceNow has significantly enhanced its offerings.
For instance, in February, the company unveiled its autonomous workforce product, featuring an AI agent capable of resolving over 90% of employee IT requests.
This bot can troubleshoot technical issues, allocate new software to personnel, and fulfill various other IT functions that once necessitated human intervention.
Moreover, the company is on an upward trajectory. During the fourth quarter of 2025, ServiceNow reported an impressive 21% year-over-year sales growth, culminating in revenues of $3.6 billion, including $3.5 billion in subscription income—indicating robust recurring revenue.
Projections for 2026 suggest continued momentum, with Q1 subscription sales expected to rise by 22% from the previous year, reaching approximately $3.7 billion.
Similarly, Salesforce has long been a leading customer relationship management (CRM) platform, but, like ServiceNow, it faces scrutiny regarding its future viability as AI assumes an increasing role in customer service interactions.
Swiftly, Salesforce embraced AI, rolling out a collection of AI-driven solutions under the Agentforce brand in 2024.
These innovations have gained significant traction among clients, as exemplified by the U.S. Department of Labor’s adoption of Salesforce’s AI technology for its customer service division.
In its fiscal fourth quarter ending January 31, 2026, Salesforce achieved record revenue of $11.2 billion, underscoring its continued operational health.
Correspondingly, Agentforce’s annual recurring revenue surged by 169% year-over-year to $800 million, reflecting a growing customer base.
An additional incentive to invest in Salesforce is the company’s commitment to dividends. In February, Salesforce increased its dividend payouts by 6% year-over-year to $0.44 per share.
Both Salesforce and ServiceNow have experienced a decline in share price valuations, as evidenced by their price-to-earnings ratios.
As of March 27, both stocks are hovering near their 52-week lows, making this an opportune moment for potential investors to engage with these expanding enterprises.
Before making an investment in ServiceNow, it is advisable to consider the following:
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Source link: Finance.yahoo.com.
