We recently published a list of Top 10 AI Stocks to Watch Amid US-China AI War. In this article we are going to look at where ServiceNow, Inc. (NYSE:NOW) stands against other must-watch AI stocks dominating headlines.
The US supremacy in artificial intelligence is at risk more than ever. That’s the harsh reality in the aftermath of Chinese intelligence startup DeepSeek unveiling low-cost AI models. Concerns that China is slowly beating the US come as a surprise, given that the two nations have been entangled in a fierce battle in the AI race.
The US has been the most aggressive in derailing China’s AI ambitions. Washington has already passed and implemented stringent regulations prohibiting US companies from trading, let alone selling advanced chips and equipment that would accelerate China’s AI development.
“[DeepSeek’s] algorithmic innovations remind us that China and the US are neck and neck and that our technological edge isn’t guaranteed, pushing our industry to make AI more efficient,” says Eric Schmidt, the former chief executive and chair of Google. “To get to AGI first, we’ll need to continue to invest in talent, support our vibrant open-source ecosystem, and ensure we out-innovate, not just outspend, our competitors.”
The innovation from DeepSeek has two ramifications for the technology sector. First of all, like ChatGPT in 2022, it is likely to hasten AI’s commercial development and adoption. By appearing to demonstrate that creating sophisticated AI models does not necessitate enormous amounts of infrastructure and, consequently, capital, it also poses a threat to shatter the investment tenets that have supported the US stock market as a whole.
Even as China and the US battle it out in the artificial arms race, other superpowers are also putting their house in order as they look to tap the massive opportunities around AI. India is one country that has also set sights on revolutionary technology that has the potential to impact various industries, from healthcare to defense, cybersecurity and the auto industry.
India has already engaged OpenAI, which looks to be at the forefront of creating a full AI stack.
“Had a super cool discussion with @same on our strategy of creating the entire AI stack – GPUs, model, and apps. Willing to collaborate with India on all three,” Union Electronics and IT Minister Ashwini Vaishnaw posted on X.
India’s Finance Minister Nirmala Sitharaman has already approved the establishment of three Centers of Excellence (Coe’s) in AI for education. With a Rs. 500 crore budget, the project intends to advance AI research and its application in the nation’s educational system. As India seeks to increase its competitiveness in the field of artificial intelligence, the new AI Centers of Excellence will focus on cutting-edge research and the creation of AI learning resources.
Within six months, the nation is also anticipated to introduce its own reasonably priced, safe, and indigenous AI model. The India AI mission is now closer to adapting native AI solutions for the domestic context using Indian languages, supported by a state-of-the-art shared computing facility.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among 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) is a technology company that offers end-to-end intelligent workflow automation platform solutions for digital businesses. The company has received a significant endorsement just days after reaching an agreement to further acquire Cuein to strengthen its artificial intelligence agents. On February 5th, non-banking financial company Poonawalla Fincorp said it’s tapping its AI-powered solutions and tools to enhance audit and governance.
By integrating ServiceNow, Inc.’s (NYSE:NOW) AI solutions, Poonawalla Fincorp hopes to strengthen its risk management framework and streamline audit processes and outcomes. The integration should also enhance efficiency, automation, and operations compliance. ServiceNow AI solutions have proved to be highly effective in analyzing large data sets and generating content that aligns with existing patterns.
Overall, NOW ranks 4th on our list of must-watch AI stocks dominating headlines. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article was originally published at Insider Monkey.
