ServiceNow (NOW) deserves a closer look today as it jumps 8.78% to $103.42. Recent analysis suggests a shift in the artificial intelligence trade, moving beyond solely focusing on the computing power needed for training AI models to the growing demand for AI inference. This transition favors companies positioned to capitalize on the deployment and application of AI, and ServiceNow appears to be benefiting from this trend.
The increasing emphasis on AI inference suggests a new phase of investment within the semiconductor industry and related sectors. While the initial AI boom centered on companies providing hardware for training large models, the focus is now expanding to include software and services that facilitate the practical application of AI. According to a recent article, AI-driven U.S. tech valuations are reflecting significant exuberance, with some analysts suggesting a rotation into undervalued or fairly valued U.S. software compounders like NOW, Microsoft (MSFT), and Salesforce (CRM).
ServiceNow's strong performance today aligns with this broader narrative. The company's platform enables businesses to integrate and automate AI-powered workflows, positioning it well to capture the growing demand for AI inference solutions. While some analysts advocate for caution regarding overvalued tech stocks, the shift toward AI inference could provide sustained growth opportunities for companies like ServiceNow. CRM also saw gains, rising 3.44% to $179.48, while MSFT increased a more modest 0.38% to $423.54.
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