The tech sector is experiencing a significant shift as Wall Street reassesses the impact of artificial intelligence (AI) on software businesses, leading to a notable sell-off. The Nasdaq Composite has officially entered correction territory, with stocks like ServiceNow (NOW) and Salesforce (CRM) dropping 35% and 32%, respectively, in 2026. Despite this downturn, both companies present attractive investment opportunities due to their proactive AI integrations and strong revenue growth.
ServiceNow has adapted by enhancing its platform with AI capabilities, including a new autonomous workforce product that automates IT tasks, contributing to a robust 21% year-over-year sales growth in Q4 2025. Similarly, Salesforce has embraced AI with its Agentforce portfolio, achieving record revenues of $11.2 billion in its latest fiscal quarter and a remarkable 169% increase in annual recurring revenue from its AI solutions.
As both stocks approach 52-week lows, now may be an opportune time for investors to consider adding ServiceNow and Salesforce to their portfolios, capitalizing on their strong fundamentals and AI-driven growth potential.
Source: fool.com