5 Stocks That Will Collapse Because of AI

In this article, we will list the 5 Stocks That Will Collapse Because of AI. This series is part of our full list of 10 Stocks That Will Collapse Because of AI, which contains the methodology we used to come up with and rank these stocks.

5. ServiceNow Inc. (NYSE:NOW)

TD Cowen analyst Derrick Wood lowered the firm’s price target on ServiceNow Inc. (NYSE:NOW) from $185 to $140 while maintaining a Buy rating on April 16. The firm’s downward-revised price target still reflects a further 37% upside from current levels. The firm said its channel checks continue to point to solid growth trends, with positive signals around AI product adoption, broader platform usage, and large-deal activity.

In addition to TD Cowen, Deutsche Bank cut its price target on ServiceNow Inc. (NYSE:NOW) from $180 to $135 while keeping a Buy rating on the stock the same day. According to the firm, the company is controlling what it can as it heads into the first quarter earnings. This reflects a focus on managing factors within its control despite the challenging environment.

The negativity among analysts had already started to build earlier when Mizuho Securities analyst Gregg Moskowitz cut the firm’s price target on ServiceNow Inc. (NYSE:NOW) from $190 to $150 on April 14. The price target adjustment came as part of its first-quarter preview for large-cap software companies. Mizuho Securities said its channel checks were broadly positive, with cloud trends and usage data indicating solid performance and AI adoption remaining very strong. However, the firm noted that demand in the cybersecurity segment was mixed. The latest price target cuts further reinforce this more cautious outlook.

ServiceNow Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The company is located in Santa Clara, California, and was founded in June 2004 by Frederic B. Luddy.