Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n Despite Palantir’s significant share price declines this year, the company reported some impressive results in its first quarter (which ended March 31). Palantir’s sales increased 85% to $1.6 billion, and adjusted non-GAAP<\/a> (adjusted) earnings spiked 154% to $0.33 per share. Both results easily outpaced Wall Street’s consensus estimates. <\/p>\n Palantir also reported that its total contract value is now $2.4 billion, up 61% from the year-ago quarter, and that it signed 72 deals worth at least $5 million and 47 deals of at least $10 million. <\/p>\n Palantir is benefiting from an increasing need among companies and the government to use AI-infused software to make sense of large datasets, and the company expects continued growth. Management raised its 2026 revenue guidance to about $7.6 billion, representing 71% year-over-year growth from 2025. <\/p>\n The case for ServiceNow <\/p>\n Some investors have feared that AI will replace ServiceNow’s core capabilities, including workflow management and automation. Still, the company’s recently reported second-quarter results prove that some of those fears are exaggerated. <\/p>\n ServiceNow’s revenue rose 24% in the second quarter (which ended June 30) to nearly $4 billion, outpacing Wall Street’s consensus estimate of about $3.9 billion. The company’s adjusted non-GAAP earnings of $0.90 per share also beat consensus estimates of $0.86 per share and were up 11% from the year-ago quarter. <\/p>\n Growth from the company’s closely watched current remaining performance obligations (cRPO), which are contracts that will be recognized as revenue in the next 12 months, rose 21% to $13.2 billion. What’s more, the company had 123 transactions with contract values exceeding $1 million, up 40% from the year-ago quarter. <\/p>\n Despite investor fears that AI will replace ServiceNow, the company’s management believes that greater AI adoption will drive additional growth, as companies will need ServiceNow’s\u00a0features to manage their AI. Following its second-quarter result release, CEO Bill McDermott told CNBC, “There’s going to be more AI. There are going to be more incidents, and all these things drive increasing volume to ServiceNow.” <\/p>\n McDermott added that the company raised its full-year guidance — which calls for subscription revenue to rise more than 23% to over $15.8 billion — due to growing business volume driven by AI. <\/p>\n Verdict: ServiceNow is the better AI software stock <\/p>\n While Palantir’s sales are expanding rapidly and the company continues to add significant deals, its shares just look far too expensive compared to ServiceNow. <\/p>\n Palantir has a price-to-earnings (P\/E) ratio of about 140 right now, compared to ServiceNow’s 60. For reference, the average P\/E ratio for the tech sector is currently 41. <\/p>\n ServiceNow’s recently reported second-quarter results show that customers continue to choose the company’s automated services, despite fears of AI disruption. That doesn’t mean ServiceNow isn’t without its risks, but with its shares significantly cheaper than Palantir’s, it looks like the better AI software stock right now. <\/p>\n Should you buy stock in ServiceNow right now? <\/p>\n Before you buy stock in\u00a0ServiceNow, consider this: <\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0ServiceNow\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $377,990!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,269,518!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 26, 2026. <\/p>\n Chris Neiger<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and ServiceNow. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: The Motley Fool. The case for Palantir <\/p>\n