And one area in particular – agentic AI – is experiencing heavy pressure. Companies involved with this fast-growing facet of AI are being sold. But two of them may be on the verge of a comeback.
Two Key Agentic AI Stocks
Agentic AI is the next wave. We all know chatbots – enter prompt, get a response.
Agents do things. Agentic AI will plan a trip, yes, but it will also book the travel arrangements, the lodging, and more.
These agents run on data and need fast, reliable connectivity for automation to occur (i.e., more computing power). Networks send the information as software coordinates everything.
The first agentic AI stock to own is Arista Networks (ANET), which builds high-performance ethernet equipment that connects systems running AI workloads. It has a $237 billion market capitalization and has fantastic fundamentals.
Revenue last quarter topped $3 billion while net income was $1.21 billion. After recent volatility, its forward price-earnings ratio fell to 36.5X. But the fundamentals are intact – 2026 sales guidance was raised to roughly $12.6 billion (a 40% jump from last year).
No wonder institutions have been supporters over the past year:
Notice the recent selling dip. It’s an opportunity.
The next agentic AI stock to own is ServiceNow (NOW). It has a $166 billion market cap built by helping companies automate complex workflows, like in IT, security, and HR.
This company’s software helps direct AI agents to do the specific tasks that deliver value for organizations. Its shares were hit hard initially by AI replacement fears, but it’s been climbing back since.
The forward P/E is 31.6X, though that could decrease through earnings expansion. Sales are expected to reach $16.2 billion this year, an increase of almost $3 billion from 2025.
Even better, net income was $1.75 billion in 2025 and is estimated to ramp way up to $4.22 billion in 2026. Those fundamentals are likely what brought institutions back (left side), though they’ve been longtime supporters (right chart):
Markets won’t remain volatile forever. As things calm down, leaders will emerge. NOW could be one of them.
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Disclosure: at the time of publication, the author holds no positions in ANET or NOW.