Guggenheim Says ServiceNow and Salesforce Are Buys Amid AI Fears
A Guggenheim analyst argues 'Armageddon' worries about AI disrupting both stocks have pushed valuations too low.
If you've been avoiding ServiceNow and Salesforce stock because you're convinced AI is about to wipe them off the map, one Wall Street analyst thinks you might be overreacting — and leaving money on the table. A Guggenheim analyst is making the case that both software giants have been beaten down too hard, with valuations now sitting at levels that price in a worst-case scenario that's unlikely to fully materialize.
The analyst's core argument isn't that AI is a myth or that these companies have nothing to worry about. In fact, the note openly acknowledges the AI threat is real. But there's a big difference between "this is a genuine competitive challenge" and full-on "Armageddon" — and right now, the market appears to be pricing in the latter. That kind of extreme fear-driven selling can create genuine buying opportunities for investors willing to think a few years ahead rather than a few weeks.
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ServiceNow and Salesforce are two of the biggest names in enterprise software — the kind of platforms that large companies rely on to manage IT workflows and customer relationships, respectively. Both have been navigating a tricky environment where AI-native competitors and even their own AI investments are raising questions about long-term pricing power and customer retention. Those are legitimate concerns, but Guggenheim's view is that the selloff has simply gone too far relative to what the fundamentals actually justify.
For everyday investors, the takeaway here is pretty straightforward: analyst upgrades like this one don't guarantee a stock will bounce, but they do signal that sophisticated money is starting to see value where fear currently dominates. When a credible firm calls a valuation "too depressed" on two marquee tech names at the same time, it's worth at least revisiting your own assumptions about the AI disruption narrative and whether the market has already over-discounted the bad news.
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