ServiceNow shares jump as AI boosts software stocks

ServiceNow shares rose 7% in premarket trading on Monday, extending their recent rally as investors appeared to rotate back into software stocks, News.Az reports, citing Yahoo Finance. 

This came following comments from Nvidia chief Jensen Huang suggesting that software companies would not be displaced by AI but instead stand to benefit from its rapid adoption.

Speaking at the Computex 2026 in Taipei on Monday, Huang said he had been asked whether AI agents would disrupt the software industry. “I said, (it’s) completely opposite. And you can see it. (AI) agents is the going to create the largest opportunity for my partner companies,” he said, while showing a slide featuring Nvidia partners including Palantir Technologies, CrowdStrike, SAP, and Synopsys, among others.

On March 5, Nvidia and ServiceNow announced an expansion of their existing partnership to develop AI agents for enterprise use.

Last week, ServiceNow shares posted their strongest daily gain in a year. Separately, Bank of America analyst Tal Liani reinstated coverage of the stock with a buy rating.

ServiceNow’s AI Control Tower platform offers centralized governance and management of autonomous AI agents across enterprises, a function Liani described as “mission-critical” for organizations.

Overall, ServiceNow shares climbed 41% last week, marking their strongest weekly performance since the company’s initial public offering in June 2012.

Broader software markets also saw strong gains, with the iShares Expanded Tech-Software Sector ETF rising 21% in May, its best monthly performance since October 2001.

News.Az 

By Nijat Babayev