ServiceNow shares surged 5% as enterprise software stocks rebounded amid a rotation out of semiconductor equities.
ServiceNow (NOW) climbed 5% on Tuesday, building on an 8% gain from the previous session. The move mirrored broader strength in enterprise software stocks as investors pivoted away from high-flying semiconductor plays toward undervalued software names.
The Tech-Software Sector ETF (IGV) rose for a fourth consecutive day, contrasting with declines in the broader market since Friday. Salesforce (CRM), Snowflake (SNOW), Adobe (ADBE), and Workday (WORK) also participated in the rebound. The shift followed growing optimism about AI-driven productivity gains for software firms.
ServiceNow and peers have aggressively integrated generative AI tools into their platforms, reversing earlier concerns that AI could disrupt traditional software business models. The rally marks a sharp turnaround from earlier this year, when software stocks faced pressure over such fears.