AI Hype? Please. These Stocks Are Still Gold.

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Right, so everyone’s lost their minds again. Artificial intelligence. It was the future, then it was the enemy, now it’s…complicated. Honestly, the market’s mood swings are exhausting. It’s like dating someone who’s convinced robots are stealing their job. Wall Street’s current panic? A gift, really. A beautifully predictable, slightly hysterical gift. Because while everyone else is busy imagining Skynet, there are actual businesses quietly getting on with things. And two in particular, ServiceNow (NOW +4.90%) and Okta (OKTA +3.06%), are looking ridiculously undervalued. I’ve been accumulating shares, naturally. You should consider it. Don’t tell anyone I said that.

ServiceNow: Not About to Be Replaced by a Chatbot

The narrative is that ServiceNow, with its workflow automation, is basically obsolete. That AI will just…do it better. It’s a lazy thought. And frankly, insulting to the people who actually built the thing. It’s like saying a plumber is redundant because someone invented a self-cleaning toilet. Yes, the toilet is clever, but it still needs pipes, doesn’t it? ServiceNow isn’t afraid of AI; it’s already integrated it. They’ve been quietly making things more efficient for ages. Customers aren’t looking to replace their systems; they want to enhance them. And guess who’s best positioned to handle that enhancement? Exactly. Bill McDermott, their CEO, put it brilliantly – AI doesn’t operate in a vacuum. It needs orchestration. It needs…well, ServiceNow. Which, let’s be honest, sounds a lot less scary than letting a rogue algorithm run your entire business.

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The numbers back it up, obviously. A 21% jump in revenue to $13.3 billion in 2025. Net income up to $1.7 billion. And they’re forecasting another 22% increase in subscription revenue. That’s not a company bracing for the apocalypse; that’s a company thriving. I’m not saying it’s a sure thing. Nothing is. But it’s a hell of a lot more solid than betting on the latest AI unicorn.

Okta: Security Isn’t Optional, Even for Robots

Then there’s Okta, and the latest round of panic sparked by Anthropic’s AI security software. The idea that AI can replace cybersecurity? Seriously? It’s like arguing that a fire alarm is pointless because you can also think about fire. Okta isn’t just about blocking hackers; it’s about verifying who should have access in the first place. Anthropic’s software finds vulnerabilities; Okta prevents the wrong people from exploiting them. It’s a fundamental difference. And it’s a difference the market seems to have missed in its AI-fueled frenzy.

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They’re also evolving their platform to distinguish between legitimate AI agents and malicious ones. Which, let’s face it, is going to be a crucial skill in the coming years. Revenue rose 12% to $742 million in their last quarter, with net income jumping to $43 million. A strengthening bottom line, as they say. And honestly, it’s comforting to know that someone is thinking about the security implications of all this automation. Because I, for one, don’t want my smart fridge launching a cyberattack.

Valuation: Let’s Be Rational, Shall We?

So, here’s the thing. Both ServiceNow and Okta are currently trading at surprisingly low valuations, as evidenced by their forward price-to-earnings ratios. Take a look.

It’s a perfect opportunity to buy. Yes, there are risks. There always are. But these are solid companies with real revenue, real customers, and a clear path to growth. I suspect Wall Street’s AI fears will eventually subside, and when they do, these stocks will experience a significant upswing. And I, for one, will be very pleased with my investment. Don’t tell anyone I said that either. It ruins the fun.

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2026-02-27 08:02