The Next Palantir Stock Is Hiding in Plain Sight (90% of Fortune 500 Use It)

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I’ve been bullish on Palantir (PLTR) stock for a long time.

In October 2020, when shares fell below $10 on insider selling, I told readers to back up the truck on the fresh IPO.

In February 2021, when the lockup expiration on PLTR stock knocked shares from $40 down to $25, I called the dip temporary. The only decision was whether to buy the stock or call options.

Then in February 2024, with shares below $25 once more, I said to buy the stock anyway because AI enthusiasm would carry the price past $35, regardless of what the math said.

It went to $207.

Now, I’m not here to tell you that Palantir has gone bad. Its second-quarter results were one of the best I’ve seen from any company. Ever. Revenues up 93%… existing customer spending up 157%… operating margins at 62%… This controversial company is producing growth and margin numbers that make Nvidia Corp. (NVDA) look sluggish.

The trouble with Palantir today, however, is that everyone now realizes how much the company is worth. Shares now trade at almost 70X sales… and my own target price of $200 offers no margin of safety for this volatile stock.

I’d hold what you own and stop adding.

Instead, the real question to ask now is: what is the next Palantir stock?

The Next Palantir Stock

To answer this, it helps to consider why I recommended Palantir in the first place. As I wrote in 2020:

Few companies in the Western world attract data science and programming talent the way Palantir can. And the firm’s push into private sector deals will unlock a massive market that’s hungry for top-tier machine learning and data analytics talent.

In other words, Palantir had three things going for it:

1. Best-in-class AI software. Palantir’s two platforms were “must-have” for customers because they were so good.
2. Great recruitment. These great products helped attract the best programming talent, creating a flywheel of even better software.
3. A cheap price. The stock was undervalued because Palantir had spent all its money on tech development, leaving its sales force understaffed.

So finding the next Palantir means identifying a world-class company with a similarly overlooked franchise. And the only company that comes close is one of my top recommendations.

ServiceNow Stock: A Palantir Alternative

ServiceNow is a straightforward company: it runs a cloud-based software platform that manages data for large companies. If a company like Amazon.com (AMZN) or Ford Motor Company (F) wants to create internal tickets and change requests, or recover lost data, they’re using software made by ServiceNow.

The company has also branched into other IT functions, including:

• Customer service
• Cybersecurity
• Financial workflows
• Low-code development
• AI-agent orchestration

And here’s the thing: these products are best-in-class. In fact, ServiceNow’s NOW Platform is so good that almost 90% of all Fortune 500 companies use it… as do thousands of smaller firms. Its product is surprisingly similar to Palantir’s, except it focuses on the more organized data that enterprises create, rather than the messier kind generated by governments, the military, surveillance, and so on.

What the Crowd Is Missing About ServiceNow Stock

Since 2024, shares of this blue-chip firm have fallen over 40% on fears of a “SaaSpocalypse” where AI replaces software-as-a-service (SaaS) platforms. If customers with no coding experience can use AI to create software, what’s stopping them from replacing ServiceNow’s platform with vibe-coded alternatives? (Palantir’s shares also fell as much as 40% this year on similar fears.)

Most investors, however, don’t realize how problematic vibe-coding has become. AI agents are notoriously undependable, and even the likes of the FBI and the U.K. AI Security Institute have faced high-profile “accidents” involving rogue AI. Everything an AI agent creates must be reviewed.

In addition, most companies are terrified of handing over their precious data to autonomous AI agents. In February 2026, Meta Platforms’ (META) Director of Safety and Alignment famously had emails deleted by a rogue AI agent. And in July, OpenAI was subject to internal hacks by its own AI. What’s stopping a similar misbehaving AI from sending Ford’s production plans to a competitor? Or deleting everything from Amazon.com’s servers? By the time a company has fully reviewed vibe-coded software, they might as well have bought ServiceNow instead.

That’s why revenues at ServiceNow have continued to grow at over 20% annually… even during a so-called “SaaSpocalypse.” The company produces the gold standard of software that runs Fortune 500 firms, and no company is willing to rip the system out in favor of some vibe-coded product.

And best of all, AI should accelerate growth at ServiceNow.

The AI Growth Story Driving the ServiceNow Stock Forecast

Artificial intelligence companies like OpenAI and Anthropic have popularized a new type of billing. The more AI “tokens” a company uses, the higher the monthly bill.

That’s proved a boon for ServiceNow, which was an early adopter of this business model. In its most recent quarter, the company’s CEO, Bill McDermott, said that 50% of new business is now based on usage, rather than on the traditional “seat-based” SaaS model.

In addition, ServiceNow’s platform includes numerous AI-powered tools… as well as the systems for separating these high-risk AI agents from the rest of a customer’s data. For example, customers can test AI agents in “sandboxes” before launching them into the wild, and then use ServiceNow to track exactly what the agents are doing. This vastly improves the chances of detecting a rogue AI.

Finally, the rise of smarter AI means that companies like ServiceNow are eyeing a far bigger prize than corporate IT budgets (around $6.4 trillion per year worldwide). Now, they’re competing for the full pie spent on labor… roughly $50 trillion per year. ServiceNow’s management said exactly that on the company’s most recent earnings call.

“The opportunity for us… is also labor arbitrage,” Chief Product Officer Amit Zavery said in prepared remarks. “So we also get to monetize the labor cost.”

That’s why analysts expect top-line growth to accelerate to 22% this year (up from 21% in 2025), and for operating earnings to rise roughly 30%. ServiceNow has become one of the most successful enterprise software vendors at AI monetization, and even Palantir might look on with envy.

The Price Is the Point: An Undervalued AI Stock

The math is equally straightforward: ServiceNow is one of the cheapest, high-growth AI companies today. Shares trade at just 30X forward earnings and 10X sales — a tiny fraction of what Palantir goes for (78X forward earnings, almost 70X sales). According to my discounted cash flow models, NOW should be trading at closer to $170, a 25% upside.

Then there’s AI mania — the same force that sent Palantir’s stock from $25 to $207. ServiceNow is equally steeped in AI software. And if the crowd starts learning about NOW’s emerging AI-based business model, I expect shares to rise to $250… and perhaps beyond.

Now, I could be wrong about ServiceNow. Perhaps AI will become so intelligent that it can audit its own work and become 100% trustworthy. Then even Palantir will not be safe from vibe-coded competitors. Or fears of an AI bubble could prove true, pulling the entire software industry down with it.

But for investors seeking a fast-growing blue-chip company with excellent AI exposure, it’s hard to find a better alternative than ServiceNow today. Palantir was an overlooked firm at $25. Now it’s ServiceNow’s turn to shine.

Editor’s Note: What ever happened to the AI stock boom? Even AI darlings like Nvidia have essentially gone nowhere since summer 2025. Our friend and colleague at InvestorPlace, Louis Navellier, may have the answer. According to Louis, the AI industry is quietly “staging” ahead of the next great AI breakthrough… a new class of AI he calls “Superintelligence… but better.” How will it trigger a $100 trillion reset of the AI markets. How will the launch of this tech send some stocks to zero, and others soaring? And why does Louis say: Don’t buy or sell an AI stock in 2026 until you see what’s coming next? Go here for the full story (and Louis’ #1 pick).  

ServiceNow (NOW) Stock FAQ

What is the next Palantir stock?

ServiceNow (NOW). It runs best-in-class enterprise software used by 90% of the Fortune 500, the same overlooked-franchise setup that made Palantir a winner at $25. Shares are down over 40% since 2024 on SaaSpocalypse fears, so you get a must-have product at a cheap price.

Why is ServiceNow stock down?

Since 2024, shares have fallen over 40% on fears of a “SaaSpocalypse,” where AI lets non-coders build their own software and abandon SaaS platforms. But vibe-coding is unreliable, AI agents are undependable, and no company will hand critical data to rogue AI. The fear looks overblown.

Is ServiceNow stock undervalued?

Yes. ServiceNow trades at 30X forward earnings and 10X sales, a fraction of Palantir’s 78X forward earnings and nearly 70X sales. My discounted cash flow models put fair value closer to $170, about 25% above today’s price, making it one of the cheapest high-growth AI names.

What is the ServiceNow (NOW) stock forecast?

My DCF models point to roughly $170, a 25% upside from here. If the crowd catches on to ServiceNow’s usage-based AI billing, I expect shares to reach $250 and perhaps beyond. Analysts see top-line growth accelerating to 22% this year and operating earnings rising about 30%.

What are the risks of buying ServiceNow stock?

Two main ones. AI could become smart enough to audit its own work and turn fully trustworthy, which would let vibe-coded software replace ServiceNow, and even Palantir wouldn’t be safe. Or an AI bubble could burst, dragging the entire software industry down with it.

Is ServiceNow stock a buy?

For investors wanting a fast-growing blue-chip with strong AI exposure, it’s hard to find a better alternative than ServiceNow today. It’s cheap, growing revenues over 20% a year, and monetizing AI as well as any enterprise software vendor. Palantir had its run at $25. Now it’s ServiceNow’s turn.