Why is ServiceNow less attractive?

Due to its high valuation of over 60 times earnings, increasing downside risk.

What is the valuation advantage of Oracle and Salesforce?

They trade at lower price-to-earnings multiples, offering a larger margin of safety.

Forget ServiceNow: 2 High-Growth Software Bargains With Safer AI

While ServiceNow grabs headlines, Oracle and Salesforce present better opportunities in AI with lower valuations and reduced risk.

By: Wrqti Editorial

May 26, 2026

2 min read

Source: 24/7 Wall St.

As ServiceNow (NYSE:NOW) captures investor attention as the poster child for enterprise AI, a new analysis suggests two high-growth software stocks offer safer AI exposure at bargain prices.

Recommended Growth Stocks

The report highlights Oracle (NYSE:ORCL) and Salesforce (NYSE:CRM) as alternatives to ServiceNow, citing their strong revenue growth and more reasonable valuations.

Oracle (ORCL)

Oracle benefits from rising demand for its cloud services, particularly in databases and AI. Its lower valuation compared to ServiceNow makes it an attractive option for growth investors seeking value.

Salesforce (CRM)

Salesforce continues to strengthen its CRM platform with AI integrations. The stock trades at a lower price-to-earnings multiple than ServiceNow, offering a larger margin of safety.

Why ServiceNow Is Less Attractive?

Despite being a leader in workflow automation and AI, ServiceNow's high valuation—over 60 times earnings—increases downside risk if growth expectations aren't met.

What This Means for Investors

Investors looking for AI exposure without the extreme valuation risk of ServiceNow may find Oracle and Salesforce to be more balanced opportunities with solid growth prospects.

Frequently Asked Questions

The analysis recommends Oracle (ORCL) and Salesforce (CRM) as safer alternatives.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.