<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Software stocks saw a sell-off in 2026 as Wall Street feared artificial intelligence (AI) could render some businesses redundant.</li><li>ServiceNow and Salesforce experienced significant share price drops, although both businesses are doing well.</li><li>By incorporating AI into their platforms, ServiceNow and Salesforce strengthened their offerings.</li><li>10 stocks we like better than ServiceNow ›</li></ul>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.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »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.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg1ODM5Ni9haV9oZWxkX2luX2hhbmRfcGVyZm9ybXNfdGFza3MtZ2V0dHlpbWFnZXMtMTQ2NjkyNDY3Ny0xMjAweDYwNC0yNTljNzc0LnBuZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="352" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg1ODM5Ni9haV9oZWxkX2luX2hhbmRfcGVyZm9ybXNfdGFza3MtZ2V0dHlpbWFnZXMtMTQ2NjkyNDY3Ny0xMjAweDYwNC0yNTljNzc0LnBuZyZ3PTcwMA"/>Image source: Getty Images. <h2>ServiceNow's strengths</h2>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.<h2>Salesforce's growing AI business</h2>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.<h2>A good time to buy Salesforce and ServiceNow shares</h2>Salesforce and ServiceNow have seen share price valuations fall this year, as evidenced by their price-to-earnings ratios.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vbWVkaWEueWNoYXJ0cy5jb20vY2hhcnRzL2I4ODQ0ZDExOWE5ZjU0ZWY5MjRlZTI5NzczY2Q5MGE2LnBuZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="443" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vbWVkaWEueWNoYXJ0cy5jb20vY2hhcnRzL2I4ODQ0ZDExOWE5ZjU0ZWY5MjRlZTI5NzczY2Q5MGE2LnBuZyZ3PTcwMA"/>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.<h2>Should you buy stock in ServiceNow right now?</h2> Before you buy stock in ServiceNow, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ServiceNow wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $501,381!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,012,581!* Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 178% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 1, 2026. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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In 2026, software stocks faced a sell-off due to fears that AI could make some businesses obsolete. Despite significant share price drops, ServiceNow and Salesforce have embraced AI, enhancing their platforms. ServiceNow reported a 21% sales growth in Q4 2025, while Salesforce's AI solutions saw a 169% increase in annual recurring revenue. Both companies are now at 52-week lows, presenting potential buying opportunities for investors. However, ServiceNow was not included in a recent list of top stock recommendations by The Motley Fool.

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