Guggenheim Calls ServiceNow and Salesforce Buys Amid AI Fears
A Guggenheim analyst argues that sell-off fears are overblown, making both software giants attractive buys despite genuine AI headwinds.
A Guggenheim analyst declared ServiceNow and Salesforce shares oversold on Monday, arguing that panic-driven "Armageddon" scenarios have pushed valuations to levels that no longer reflect the companies' underlying fundamentals, even as artificial intelligence competition poses a credible long-term challenge to both firms.
The analyst acknowledged that the AI threat to traditional enterprise software is real — not a phantom concern investors should dismiss — but contended that the market has overcorrected, pricing in a worst-case disruption that is too extreme to justify current share-price levels. That disconnect between fear and fair value is what makes both stocks look like buying opportunities, according to the Guggenheim note.
Read more Dow Jones Stocks on the Move This Wednesday Session →
ServiceNow and Salesforce are two of the largest players in enterprise workflow and customer relationship management software, respectively, and both have faced mounting investor anxiety over whether AI-native competitors or in-house AI tools could erode their dominance. That pressure has weighed on their share prices, creating the valuation gap the analyst is now flagging.
The call reflects a broader debate playing out across the software sector: whether established SaaS incumbents can adapt quickly enough to an AI-driven landscape or whether they face structural obsolescence. Guggenheim's view lands firmly in the adaptation-and-survival camp, suggesting the selloff represents opportunity rather than a rational re-rating of the businesses.
Continue reading at MarketWatch.com
