5 Best AI Stocks to Watch in May

In this article, we will look at the 5 Best AI Stocks to Watch in May. Please visit 10 Best AI Stocks to Watch in May if you’d like to see an extended list and methodology behind it.

5. ServiceNow Inc. (NYSE:NOW)

Potential Upside: 58.53%

Number of Hedge Fund Holders: 118

ServiceNow Inc. (NYSE:NOW) is one of the best AI stocks to watch in May. Based on 49 analyst ratings compiled by CNN, 90 percent of analysts rated ServiceNow a Buy, with an average price target of $140, representing a 58.53% upside from the current price of $88.31. On April 28, TipRanks reported that Evercore ISI analyst Kirk Materne maintained a Buy rating on ServiceNow and set a price target of $140.00. Earlier on April 24, Citi Analyst Tyler Radke also issued a Buy rating on ServiceNow.

For the first quarter of the year, ServiceNow reported a 22% rise in total revenues to $3.77 billion, driven by higher subscription revenues. ServiceNow President and CFO Gina Mastantuono said the company exceeded the high end of its topline guidance. She added:

“In Q1, we exceeded the high end of our topline and profitability guidance metrics, grew free cash flow, and returned capital to shareholders. The early close of our Armis acquisition meaningfully expands our TAM and accelerates our subscription revenue growth trajectory. With agentic AI, workflow orchestration, security, and data fabric converging on a single platform, we believe the most compelling chapter in ServiceNow’s growth story is just beginning.”

In December, ServiceNow announced the acquisition of cyber exposure management & security company Armis for $7.75 billion in cash. ServiceNow said the acquisition will expand its security workflow offerings and advance AI-native, proactive cybersecurity and vulnerability response across all connected devices.

ServiceNow (NYSE:NOW) provides an end-to-end workflow automation platform for digital businesses. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise.