What Are the 5 Best AI Software Stocks to Buy Right Now?
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
The Motley Fool
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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.
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