10 AI Stocks in the Spotlight This Week

6. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 106

ServiceNow, Inc. (NYSE:NOW) is one of the 10 AI Stocks in the Spotlight This Week. On October 30, Wells Fargo analyst Michael Turrin raised the price target on the stock to $1,275.00 from $1,225.00 while maintaining an Overweight rating driven by the company’s higher FY25-26 outlook.

The firm believes that ServiceNow is one of the best growth assets in large-cap software.

“Model Updates: We’re revising our estimates higher to account for the raised 2025 guide and flow-through to 2026 and beyond. FY25 revs to/from $13.2B/$13.2B, FCF $4.5B/$4.2B, EPS $17.43/$17.09. FY26 revs $15.6B/$15.5B, FCF $5.4B/$5.1B, EPS $20.64/$20.19. Valuation: NOW shares are trading at 12.5x NTM EV/S and 35x NTM EV/FCF. Our $1,275 PT (raised from $1,225 on higher estimates) is derived from 42.5x EV/FCF on our Fwd NTM est (implies 15x EV/S), an admitted premium, but one we believe is warranted given NOW’s profile as one the best growth assets in large-cap software.”

ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.