We recently compiled a list of the 11 AI News You Should Not Miss. In this article, we are going to take a look at where ServiceNow, Inc. (NYSE:NOW) stands against the other AI stocks.
Reviewing Rising AI and Security Trends
Cloudflare recently released its fifth annual Year in Review report which highlights trends in internet usage and security, with a focus on AI advancements. Codeium, Claude, and CoPilot entered the top ten most popular generative AI services, while OpenAI maintained its lead. The report also revealed an increase in malicious traffic, with 6.5% of global traffic flagged as potentially harmful. AI bots, like Bytespider and ClaudeBot, were identified as some of the most active, although their traffic slightly decreased over the year.
Other key findings include a rise in government-directed internet shutdowns, with over half of global outages linked to these actions, and the Gaming and Gambling industries becoming the most targeted by cyberattacks.
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The Impact of AI on Investment Strategies and Market Trends
In a CNBC interview, Angie Newman of UBS Private Wealth Management discussed the challenges posed by geopolitical uncertainty and changing interest rates, emphasizing that stocks and bonds often become more correlated during such times. To hedge against this, she recommended diversifying into alternative assets with low correlation to traditional investments, such as gold and private equity.
She highlighted sectors within private equity, including real estate and data centers, as strong performers, especially with the rise of AI. Regarding AI, Newman noted the importance of diversifying portfolios by considering both tech giants and second and third-tier beneficiaries, such as companies benefiting from AI integration, including those with healthy P/Es and dividends. AI, she believes, will be a key driver of equity returns across various sectors.
Navigating Data Complexity in the AI Era
On December 10, NetApp released a report that stressed the importance of investing in unified data strategies and highlighted the growing need for security and sustainability as AI use expands. The Data Complexity Report highlighted the challenges and opportunities of managing data for AI as organizations move from experimenting with AI to scaling its use.
Key findings include the need for significant investment in AI and data unification, which 79% of tech executives see as crucial for success. Security concerns are rising, with 41% predicting more threats in 2025, especially in AI-leading nations. Sustainability remains a focus, though its importance has slightly declined. The report emphasized that secure, unified, and sustainable data strategies are essential for leveraging AI’s transformative potential while maintaining resilience and innovation.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of software engineers at desks working on code for a cutting-edge cloud computing solution.
ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 78
ServiceNow, Inc. (NYSE:NOW) provides an AI-powered workflow automation platform that enables digital transformation across industries. Its offerings include AI, machine learning, robotic process automation, and process mining to optimize business operations and enhance customer and employee experiences.
ServiceNow (NYSE:NOW) was named a Leader in Forrester’s Q4 2024 Wave for Task-Centric Automation Software (TCAS), recognized for its Automation Engine, which integrates RPA, AI, process mining, and real-time data streaming. Forrester praised its AI capabilities, vision, and strong partnerships.
The report highlighted ServiceNow’s ability to combine task automation with a comprehensive platform approach, while VP Amit Saxena emphasized the role of data and AI in driving long-term process improvements. Powered by generative AI, Automation Engine automates tasks, improves workflows, and supports tools like Now Assist and AI Agents to improve efficiency and reduce costs.
Overall, NOW ranks 4th on our list of AI news you should not miss. While we acknowledge the potential of NOW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.