2 No-Brainer Software Stocks to Buy Right Now
Key Points
Software stocks saw a sell-off in 2026 as Wall Street feared artificial intelligence (AI) could render some businesses redundant.
ServiceNow and Salesforce experienced significant share price drops, although both businesses are doing well.
By incorporating AI into their platforms, ServiceNow and Salesforce strengthened their offerings.
- 10 stocks we like better than ServiceNow ›
The arrival of artificial intelligence (AI) propelled many technology stocks skyward, but that changed in 2026. Wall Street realized AI could make some software businesses obsolete, leading to a sell-off that contributed to the tech-heavy Nasdaq Composite officially falling into correction territory.
Still, the situation creates opportunities for the industrious investor to scoop up shares in excellent companies at favorable valuations. Some are at the point where their stocks are no-brainer buys.
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Two such companies are ServiceNow (NYSE: NOW) and Salesforce (NYSE: CRM). ServiceNow stock is down a whopping 35% in 2026 through the week ending March 27. Salesforce dropped 32% in that time. Here are the reasons to purchase these stocks.
Image source: Getty Images.
ServiceNow's strengths
Wall Street believes ServiceNow's business model is threatened by AI. The company's bread and butter is a software platform that streamlines an organization's workflows. In the AI era, artificial intelligence agents can automatically execute tasks on their own, which seems to make ServiceNow's offerings redundant.
The company got ahead of this threat by embracing AI. Its platform already houses data and knowledge about customer workflows, and by feeding this information into its proprietary AI models, ServiceNow's platform has only improved.
For example, in February, the company launched its autonomous workforce product, starting with an AI agent that can handle over 90% of employee IT requests, according to ServiceNow. The bot can troubleshoot tech issues, assign new software to staff, and perform other IT tasks that once required a person.
In addition, the company's performance shows no signs of slowing down. In the fourth quarter of 2025, ServiceNow reported strong 21% year-over-year sales growth to $3.6 billion. This included $3.5 billion in subscriptions, which represents stable recurring revenue. ServiceNow expects to carry this momentum into 2026, with Q1 subscription sales predicted to rise 22% over the prior year to around $3.7 billion.
Salesforce's growing AI business
Salesforce has been a top customer relationship management (CRM) platform for years, but like ServiceNow, Wall Street sees artificial intelligence eating its lunch. With AI agents expected to increasingly take over customer service roles in the coming years, the need for CRM tools is diminished.
Salesforce didn't hesitate to integrate AI into its vast offerings. It introduced a portfolio of AI solutions bundled under the Agentforce brand in 2024. Customers have embraced the products. For instance, the U.S. Department of Labor adopted Salesforce's AI technology for its customer service center.
The company posted record revenue of $11.2 billion for its fiscal fourth quarter of 2026, ended Jan. 31, which illustrates its business remains healthy. Meanwhile, Agentforce's Q4 annual recurring revenue rose 169% year over year to $800 million, a sign of growing customer adoption.
An added bonus to investing in Salesforce is that this growth stock pays dividends. In February, the company hiked its dividend payouts by 6% year over year to $0.44 per share.
A good time to buy Salesforce and ServiceNow shares
Salesforce and ServiceNow have seen share price valuations fall this year, as evidenced by their price-to-earnings ratios.
Data by YCharts.
In fact, both stocks hover near 52-week lows as of March 27. With the drop in their earnings multiples, now looks like a good time to invest in these growing businesses.
Should you buy stock in ServiceNow right now?
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Robert Izquierdo has positions in Salesforce and ServiceNow. The Motley Fool has positions in and recommends Salesforce and ServiceNow. The Motley Fool has a disclosure policy.
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