11 Latest AI & Other Stocks on Jim Cramer’s Radar

7. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders In Q1 2025: 106

ServiceNow, Inc. (NYSE:NOW) is a software company that enables companies to manage and analyze their daily operations. Its shares have lost 15% year-to-date as Wall Street shifts its focus to AI-focused software companies and shuns enterprise software providers. One key factor that has driven ServiceNow, Inc. (NYSE:NOW)’s shares lower is its per-seat model, which can be disrupted by AI. Cramer has defended the firm’s AI-exposure in his previous comments, and he asserted that ServiceNow, Inc. (NYSE:NOW) could help the US government with producing accurate inflation and labor market data:

“You gotta outsource this. You’ve got to give this to ServiceNow. It cannot be done by the government. . .You can’t have the revisions like we had in employment and think there’s any substance. . .

“I think that it would be aplomb to handle that business. I think that it would be great bragging rights. I also think a guy like Bill McDermott, great American, he’d just say listen, we’ll take it on. We’ll do at cost. McDermott would do that, ServiceNow, I mean. ServiceNow by the way being hurt by this Melius thesis, Ben Reitzes thesis, that AI is eating software. Which the judge talked about extensively yesterday in a very good roundtable. Very good roundtable.”

Previously, Cramer asserted that ServiceNow, Inc. (NYSE:NOW) is still a great long term AI play:

“Okay, ServiceNow short term is being hurt by a call out of Melius, and that’s by Ben Reitzes, who was saying that these software as a service companies are going to be under pressure because their seat models can be hurt by AI. I think, longer term, ServiceNow has really good AI, and it would not be a stock that I would want to bet against. So, ServiceNow, longer term, I think is fine. Shorter term, I think it’s going to be under pressure.”