10 Best Machine Learning Stocks to Buy Now

7. ServiceNow Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 110

ServiceNow Inc. (NYSE:NOW) provides global cloud-based solutions for digital workflows. It integrates machine learning in its offerings to automate workflows. It also helps the company enhance service management capabilities for its enterprise clients. The company’s Now platform is an AI platform for digital transformation ML and robotic process automation among other applications.

The company is integrating AI in its platforms, products, and operations to automate both complex and routine tasks, which is why AI-related deals were up 150% sequentially in Q4 2024. The company also focuses on high-value clients to drive its revenue. It closed 170 deals in Q4 that exceeded $1 million in net new ACV. 2 of these deals even crossed $100 million. On January 30, Rob Oliver, an analyst at Baird, reiterated a buy rating on ServiceNow Inc. (NYSE:NOW) with a $1200 price target because of its GenAI integrations.

The company is now looking to acquire Logik.ai, which was founded in 2021. Logik.ai specializes in AI-powered Configure, Price, Quote (CPQ) solutions and will help ServiceNow Inc. (NYSE:NOW) improve its Sales and Order Management (SOM) processes. This will boost ServiceNow Inc.’s (NYSE:NOW) CRM capabilities by creating a convenient experience for both the customers and the sales team.

Sands Capital Select Growth Fund stated the following regarding ServiceNow Inc. (NYSE:NOW) in its Q4 2024 investor letter, following its strong growth and financials:

“ServiceNow, Inc. (NYSE:NOW) shares advanced following its third-quarter business results, which revealed impressive execution at scale across the company’s product suite.

The business exceeded both top- and bottom-line expectations, with subscription revenue growing 22 percent in constant currency and adjusted operating margins expanding to 31 percent. Momentum continues in its Pro+ generative artificial intelligence (AI) product, which we estimate is generating nearly $100 million—a roughly 200 percent increase relative to the prior quarter. Outside of AI, momentum was broad across products and customer segments.

Over our five-year horizon, we expect ServiceNow to sustain over 20 percent top-line growth with incremental upside from continued progress in its AI-enabled products. We view its durable growth fueled by a broad product suite, paired with AI-related upside, as favorable relative to peers that trade at comparable valuations with weaker platform opportunities.”