Wedbush added Salesforce (CRM) and ServiceNow (NOW) to its IVES AI 30 (IVES) after removing them in December 2025, and noted that the software sell-off is overdone.
The firm removed Roblox (RBLX) and Baidu (BIDU) from the list.
“With this report we are adding Salesforce and ServiceNow back to the IVES AI 30 list after taking them off in early December with this software Armageddon sell-off the last few weeks assuming software/tech behemoths like Salesforce and ServiceNow are structural losers from the AI Revolution….and we strongly disagree. We are removing Roblox (RBLX) and Baidu (BIDU) from the list,” said analysts led by Dan Ives.
The analysts noted that the AI Revolution is just beginning, and they believe tech stocks and the AI winners should be bought, given their view that this is year three of what will be a 10-year cycle of this AI Revolution buildout.
The analysts added that recently there have been some rough and nervous days for tech investors as a risk-off rally on tech AI stalwart names has put some clear concerns in this tech bull market despite seeing eye-popping results from various leaders in the AI Revolution, including Alphabet (GOOG) (GOOGL), Meta Platforms (META), and Palantir Technologies (PLTR), others.
Ives and his team said that it is still early days in the AI Revolution as more enterprise customers and chief investment officers, or CIOs, discover the role AI will play in their organizations,and this is set to drive the next wave of massive AI strategic deployments.
The analysts noted that AI is a headwind for software, but the ‘software armageddon’ is overblown.
“We believe the market is baking in a doomsday scenario for software companies in the near-term, which we believe is extremely overblown, as many customers won’t be willing to put their data at risk to capitalize on AI implementation strategies until there is less risk with these migration projects. We believe the sell-off in tech stalwarts Salesforce and ServiceNow are way overdone and both these tech players will be core participants in the AI Revolution,” said Ives and his team.
Salesforce (CRM)
The analysts believe that Salesforce is still a long-term winner of the AI Revolution despite the company finding itself in the epicenter of the software sell-off, as they think the market is overlooking key details about Salesforce’s differentiated position against the negative overhang.
“While the company is seeing a slower than expected monetization of its Agentforce strategy across its enterprise installed base, CRM can monetize its vast installed base of over 150,000 customers, which includes over 90% of the Fortune 500 and these customers have spent decades codifying their business logic and organizing their data within the Salesforce ecosystem,” Ives and his team added.
ServiceNow (NOW)
The analysts noted that ServiceNow represents one of many tech stalwarts in the AI Revolution, with the generational spending cycle as the company’s cloud-based platform approach with its end-to-end Agentic AI-first strategy playing out and gaining traction across its new and existing customer base.
“With share prices falling ~50% over the past 12 months, we believe there is a disconnected valuation as AI will ultimately be a tailwind for existing implementations like ServiceNow with trillions of data points ingrained in enterprise infrastructure that will be difficult to replace by new AI entrants,” said Ives and his team.
Shares of Salesforce and ServiceNow were largely flat premarket on Monday.