Great Agentic AI Software Stocks

• Oracle ($707B market cap) is benefiting as a cloud infrastructure giant, with revenues expected to nearly double from $67.2B to $130B by fiscal 2028, though it experienced recent institutional outflows.
• ServiceNow ($126B market cap) is becoming essential for AI agent workflows and automation, with annual EPS expected to reach $33.79 by 2028, up from current levels.
• Microsoft ($3.3T market cap) dominates across the entire AI software stack with a forward P/E of 23.4, EPS projected to grow from $16.80 in 2026 to $22.83 in 2028, and has attracted institutional capital for decades.

Market Summary: Agentic AI Software Stocks

Key Investment Thesis

Contrary to predictions of AI killing the software sector, companies within the AI software stack are showing strong performance and attracting significant institutional capital. The article identifies three agentic AI software stocks positioned to benefit from digital worker automation.

Featured Companies & Valuations

Oracle (ORCL)

• Market cap: $707 billion
• Cloud infrastructure giant
• Revenue projection: $67.2 billion current, expected to reach $130 billion by fiscal 2028
• Recent institutional inflows after period of outflows
• Up 2.61%

ServiceNow (NOW)

• Market cap: $126 billion
• Digital workflow platform focused on AI agent assistance and automation
• Currently oversold but showing signs of reversal
• Long-term institutional cornerstone investment
• Up 1.24%

Microsoft (MSFT)

• Market cap: $3.3 trillion
• Comprehensive AI software stack exposure (agents, applications, data, cloud, infrastructure)
• EPS estimates: $16.80 (2026), $19.43 (2027), $22.83 (2028)
• Forward P/E ratio: 23.4 (considered value territory)
• Fundamental score: 75%
• Decades-long track record of institutional capital attraction

Market Implications

The AI software stack encompasses AI agents, business applications, data analytics, cloud computing, and data infrastructure. Companies embracing agentic AI—digital workers performing specific automated tasks—are positioned as sector winners. The article emphasizes following institutional money flows as a key indicator for identifying outperforming software stocks in the AI era.