Great Agentic AI Software Stocks

Some have said the software trade is dead. AI is going to kill it.

Well, the internet has “killed” things before that went on to live. So, I’m here to say software isn’t all dead yet.

Some software companies are very much alive. They’re the ones within the AI software stack. And they’re seeing big institutional inflows.

Three Great Agentic AI Software Stocks to Own

What do I mean by the AI software stack? I’m talking about key pieces of AI, including:

• AI agents
• Business applications
• Data analytics
• Cloud computing, storage, and networking
• Data infrastructure

This setup is what allows for agentic AI – think of digital workers doing specific things. This is where many companies have said they see their businesses going.

So, here are three great agentic AI software stocks to own.

The first is Oracle (ORCL). This $707 billion market capitalization company is a cloud infrastructure giant, and agentic AI lives in the cloud, where data is stored and processed.

The company’s revenues are slated to reach $67.2 billion. By fiscal 2028, they’re expected to hit nearly $130 billion.

There were nasty outflows for ORCL shares during the software meltdown earlier this year. However, note the recent green inflows – that’s money being put to work:

Big Money seems to have come back to its senses. Still, shares could be undervalued for this pillar AI name.

The next agentic AI software stock to own is ServiceNow (NOW). It’s a $126 billion market cap digital workflow giant. It’s becoming a key piece of how AI agents are assisted when handling tasks, including decision support and automation.

Shares have been pressured for a while. But rising earnings indicate they could be undervalued.

For instance, analysts expect NOW’s annual per-share earnings to go from $4.15 this year to $5.06 next year and $6.20 in 2028.

The company is oversold and perhaps turning the corner:

Elite businesses bring in institutional capital, even if it takes a while. As the chart on the right above shows, NOW has been an institutional cornerstone for years.

The final agentic AI software stock to own is a familiar name – Microsoft (MSFT). The $3.3 trillion market cap company is all over the AI software stack. It has agents, business applications, data, cloud, and infrastructure.

Shares have been sold hard. But as has long been the case, the company has strong earnings.

EPS estimates call for $16.80 this year, $19.43 next year, and $22.83 in 2028. Also, the forward price-earnings ratio is 23.4, showing it’s a value play right now.

Stocks follow earnings, so we would expect the downturn to end soon. And perhaps it already is:

As the chart shows, MSFT is the ultimate outlier. It has attracted institutional capital for decades. And with a fundamental score of 75%, it’s clearly still generating serious cash.

Winners and Losers

In entire industries, there are always winners and losers, no matter the market conditions. The same is true in software.

But right now, it seems the companies that embrace AI are going to win over time. To find out which ones are attracting institutions, follow the flows!

If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

Disclosure: at the time of publication, the author owns MSFT in personal accounts and holds no positions in ORCL or NOW.