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What Are the 5 Best AI Software Stocks to Buy Right Now?

July 5, 2025
05:50 AM
5 min read
AI Enhanced
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Key Takeaways

Artificial intelligence (AI) is reshaping the software-as-as-service (SaaS) landscape, but five companies stand out as leaders: Palantir nologies (PLTR 1. 62%), GitLab (GTLB 2. 73%), Salesforce (CRM 1. 14%), ServiceNow...

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July 5, 2025

05:50 AM

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Artificial intelligence (AI) is reshaping the software-as-as-service (SaaS) landscape, but five companies stand out as leaders: Palantir nologies (PLTR 1. 62%), GitLab (GTLB 2. 73%), Salesforce (CRM 1. 14%), ServiceNow (NOW 3. 46%), and Adobe (ADBE 0

Each is using AI in a different way, but all are seeing solid traction with their AI offerings

Let's look at why all five of these stocks appear to be solid investment options over the long term

Image source: Getty Images

Palantir nologies Palantir has gone from polarizing to a powerhouse

Its revenue is not just growing quickly, it's accelerating

The first quarter marked the seventh straight quarter of accelerating revenue growth, up 39% year over year

Commercial sales are leading the way, surging 71% last quarter, as customers embrace its Artificial Intelligence Platform (AIP)

Meanwhile, its government continues to see strong traction

Government revenue jumped 45% last quarter, while the company also recently secured a large contract with NATO

AIP is what makes Palantir special

The platform doesn't just gather and analyze data; it structures it into an "ontology" that links digital inputs to real-world assets

This allows its software to use AI to identify risks and vide real solutions

The company has also recently added AI agents to its platform to automatically act on those solutions

Currently, AIP is being used by companies across a wide range of industries to help solve very different blems

This breadth of use cases is why Palantir has such a huge growth opportunity still in front of it

GitLab GitLab is at the heart of secure software development

Already a leader in DevSecOps (development, security, and operations), the company just launched GitLab 18, which includes over 30 enhancements to its platform, highlighted by its new GitLab Duo Agent Platform

This allows users to deploy AI agents across the entire software development life cycle, not just for code generation, but for tasks testing, documentation, and compliance

It's addressing a key pain point, as according to a recent William Blair survey, developers spend only 20% of their time writing code, leaving huge room for ductivity gains in the remaining 80%

The launch also brought new features in security and compliance, while GitLab expanded partnerships with Amazon and Anthropic, reinforcing its DevSecOps leadership

GitLab has seen strong revenue growth, including 27% last quarter

Customers are expanding seats and upgrading to higher tiers as AI-driven development takes off

While some fear that AI might replace developers, GitLab is ving it can make them far more efficient, and that makes the company a long-term winner

Salesforce Salesforce is pushing to become a digital workforce leader with its Agentforce platform

Already the dominant player in customer relationship management software, it's using its huge installed base to launch a new AI agent ecosystem

With over 4,000 paying customers since its October launch, Agentforce is off to a strong start

The company's strategy centers on unifying apps, data, automation, and metadata into a single framework called ADAM to power a digital labor force

It offers prebuilt agents and no-code tools through Agentforce so customers can build their own AI agents

It recently introduced a new flexible Agentforce consumption-based pricing model that is more aligned with outcomes in order to help increase adoption and imve customer satisfaction

If Salesforce can become a digital workforce leader, the stock will have a lot of upside from here

ServiceNow ServiceNow is quietly becoming one of the most important AI software companies in the enterprise space

The strength of its platform has always been connecting siloed departments and helping organizations line their operations, but AI is helping take that to another level

ServiceNow is helping companies digitize operations and cut costs, which is exactly what es need in today's uncertain macroenvironment

Its generative AI assistant, Now Assist, does this in several ways, including viding an AI chatbot to handle questions, a text-to-code generator, and a case summarization tool

While best known for its information nology (IT) management platform, it has broadened into other areas such as HR, customer service, and more through its Now Platform

AI is already fueling growth, with Plus deals, which include its AI solutions, quadrupling year over year in Q1

With the help of AI, it looks the company has a huge opportunity ahead

Adobe Adobe isn't chasing AI, it's weaving it into everything it does

Its Firefly generative AI model allows users to create content from text mpts that they can further manipulate with Adobe's creative tools, such as Photoshop

Importantly, it also vides intellectual perty tection, which is important for enterprises that want to avoid any potential lawsuits

The strategy is bringing in new users and keeping existing customers locked in

But Adobe's AI push extends well beyond creative fessionals

It's also embedding AI tools into its Document Cloud and Express solutions to help users create content, analyze documents, and even automate marketing

Acrobat and Express ducts hit 700 million monthly active users last quarter, and subscription revenue for this segment jumped 15%

While it's not seeing explosive growth, Adobe is a solid AI compounder with a sticky customer base and expanding use cases

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors

Geoffrey Seiler has positions in GitLab and Salesforce

The Motley Fool has positions in and recommends Adobe, Amazon, GitLab, Palantir nologies, Salesforce, and ServiceNow

The Motley Fool has a disclosure policy.