3 AI Software Stocks to Own in the Agentic Era
All software isn’t doomed.
In fact, money is finally chasing the theme again.
Here are 3 AI software stocks to own in the agentic era.
It’s hard to believe that enterprise SaaS stocks are gaining ground.
Just 4 short months ago, the overarching narrative was that AI would destroy all software companies.
We took the other side on February 12th by highlighting 2 ultra-rare bullish signals for software companies.
That was a great call.
Since then, the iShares Expanded Tech-Software Sector ETF (IGV) more than doubled the S&P 500 with a crowd-stunning performance of +23.76%…easily outpacing the large-cap index’s +10.97% gain.
The software industry isn’t bullet-proof…but epic fear-driven selloffs have happened before…and industry leaders eventually thrived.
This doesn’t mean it was a cake walk along the way.
Examples include:
- Dot-com crash of 2000 – the internet survived
- Global Financial Crisis of 2008 – Real Estate survived
- Crypto Winter of 2022 – digital assets survived
- SaaS-Pocalypse of 2026 – software is declared dead
Here’s the reality: Not all software is safe.
Only companies embracing the AI software stack stand a chance.
Here’s a look at the AI software stack:
- AI agents -digital workers
- Business applications – CRM, workflows
- Data – analytics
- Cloud – compute, storage, networking
- Infrastructure – data centers
AI isn’t replacing software. It’s creating a new software stack:
Today, we’ll outline the companies that stand to win in the new era of AI.
And all 3 stocks show signs of recent institutional accumulation.
3 AI Software Stocks to Own in the Agentic Era
The winners in the software space must embrace AI.
Our first AI software stock to own in the Agentic Era is Oracle (ORCL). The $707 billion market cap firm sits in the Cloud layer of the AI stack.
Every AI application needs to live somewhere.
That data must be stored and processed:
It may surprise you to know that ORCL shares are up 18.17% in 2026.
A good reason for the positive turn of fortune is how upbeat analysts have been on Oracle’s sales trajectory.
Here we can see how FY 2026 revenues are slated to reach $67.2 billion. By FY 2028, Wall Street projects sales to surge to nearly $130 billion.
That’s a trend you don’t want to fight:
When sales are estimated to rise, investors will eventually come to their senses.
Is there reason to own Oracle shares now? YES.
The first signs of life can be seen in our data.
Below outlines how nasty the outflows were for ORCL shares during the software meltdown of 2026.
But note the recent green inflows. Money is being put to work.
Off to the right indicates how ORCL shares were a top-ranked stock on our weekly Outlier 20 report back in 2023 before blasting off:
We view Oracle as undervalued and a pillar name in the AI race.
The number 2 AI software stock to own in the Agentic Era is ServiceNow (NOW). The $126 billion market cap software giant is a digital enterprise workflow platform.
Let’s visualize ServiceNow’s place in the AI stack:
ServiceNow shares have been under immense pressure, falling 41% last year.
Is there reason to believe the stock is undervalued? Yes.
One look at ServiceNow’s annual EPS estimates by analysts, suggests a rising trend.
Here we can see how FY 2026 EPS sits at $4.15.
Fast-forward to FY 2028 and you’ll see an acceleration to $6.20:
ServiceNow has been the poster child of the software Armageddon.
Below on the left, note the non-stop outflows pressing NOW shares to extreme oversold levels.
Circled, you’ll see the first inflow in a year.
More importantly, to the right, see how NOW was a prior institutional darling with many Outlier 20 instances:
Elite software stocks will eventually have their day.
MoneyFlows will spot that trend early!
Let’s do one last name.
Our number 3 AI software stock to own in the Agentic Era is Microsoft (MSFT). The $3.3 trillion giant touches almost every layer of the AI software stack.
With Copilot, Office, Teams, Azure and more…Microsoft isn’t one AI bet. It’s the entire ecosystem:
MSFT shares have been under pressure, dropping 11.64% YTD.
One reason to consider the stock today comes down to the earnings picture.
For FY 2026, EPS estimates have risen to $16.80.
Zoom out to 2028 and that number jumps to $22.83 at last measure:
Stocks eventually follow earnings.
We believe Microsoft will deliver in the years ahead.
And lately we’ve noted a brand-new inflow.
Below reveals how MSFT shares have finally signaled institutional support and months of relentless outflows.
Keep in mind, Microsoft is the ultimate outlier with dozens of instances on our Outlier 20 report throughout the years:
At the end of the day, there will be software winners and losers.
Those who embrace AI fully will come out on top.
The surefire way to make sure you’re on board when the software tide turns higher is to follow the money flows.
That’s how to win in 2026. It’s that simple!
If your portfolio isn’t outperforming in 2026, you deserve better research.
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AND don’t miss my deep dive conversation on AI software stocks with Jason Bodner. We dive into this post and highlight additional stocks and more.
Enjoy!