We just covered the Claude Stock Portfolio: Top 10 Stocks to Buy According to AI Chatbot. ServiceNow (NYSE:NOW) ranks #3 (see Claude Stock Portfolio: Top 5 Stocks to Buy According to AI Chatbot).
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Wall Street has been skeptical about ServiceNow (NYSE:NOW) amid concerns that AI disruption could hurt the company’s long-term growth. The bear case argues that AI agents could eventually replace parts of ServiceNow’s software over time. Anthropic’s AI model Claude recently addressed those concerns, saying it assigns a 20% probability to that bear case but remains bullish on the stock.
Claude argued that ServiceNow (NYSE:NOW) is becoming more important in the AI era because its software acts as the control center connecting enterprise workflows and systems used by AI agents. Claude also said ServiceNow’s Now Assist AI offering is monetizing through additional seat pricing rather than replacing its core platform. The AI model added that ServiceNow’s roughly 18x fiscal 2027 earnings multiple already reflects execution concerns, compared with its five-year average valuation near 35x and peer SaaS companies trading around 25x.
ServiceNow (NYSE:NOW) CEO recently said the company believes reaching $30B in subscription revenue by 2030 is the “bear case.” Last year, the company’s subscription revenue came in at about $12.8 billion.
ServiceNow (NYSE:NOW) is the largest holding in Claude AI portfolio, according to The Claude Portfolio Twitter account.
Polen Focus Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q1 2026 investor letter:
“As agents need access to a company’s mission critical software, the software companies may be able to monetize agentic users just as they do human ones. Companies like Microsoft, ServiceNow, Inc. (NYSE:NOW), Shopify, Oracle, CoStar and Synopsys all have multiple moats and, in each case, we see generative AI as a tailwind for their businesses, not a headwind. We believe the selloff in these businesses in the quarter presented us with attractive buying opportunities …. (Click Here to Read the Letter in Detail).”
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While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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