This AI Stock May Be the Biggest Winner as Enterprise AI Takes Off
2026-09-30 17:43
•Marc Guberti •The Motley Fool
••••• •••• Axe Cap view
ServiceNow: The Quiet AI Powerhouse to Watch
ServiceNow is rapidly becoming a key player in enterprise AI with strong growth and major tech partnerships.
ServiceNow is not a household name here in South Africa but its playbook on enterprise AI matters for our markets. With 90% of Fortune 500 companies as clients and big partners like Nvidia, Microsoft, and Amazon, it’s benefiting from a surge in AI-driven workflow automation. The company’s recent 24% revenue growth and 40% jump in large contracts show enterprises are upgrading as AI costs rise. This isn’t just hype—the Nvidia CEO calling it the 'best platform for enterprise AI' suggests real tech muscle behind the scenes. For JSE investors, the clearest link is via Nvidia, whose chips power much of this AI expansion. Nvidia’s fortunes often sway USD/ZAR. A stronger dollar from global AI demand could mean more rand weakness ahead. That said, if AI adoption slows or large customers cut back, this growth story might falter. this is just our opinion and not financial advice
We would watch Nvidia closely and consider a modest position on any pullbacks while remaining cautious on USD/ZAR strength expectations. For local stocks, keep an eye on MTN or Capitec as indirect plays on digital transformation, but avoid direct exposure to ServiceNow without a clear local proxy.
- NVDA
- USD/ZAR
- Slower than expected AI adoption
- USD strength hurting rand exposure
6/10
ServiceNow is positioned as a major beneficiary of enterprise AI growth, with 90% of Fortune 500 companies as customers and partnerships with Nvidia, Microsoft, and Amazon. The company is experiencing accelerating growth driven by large customers upgrading subscriptions as AI costs rise, with Q2 showing 24% revenue growth and a 40% year-over-year increase in $1M+ contract values. Nvidia CEO Jensen Huang stated the market has undervalued ServiceNow, calling it 'destined to be the best platform' for enterprise AI.
Our take is based on reporting first published by The Motley Fool.