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ServiceNow (NYSE: NOW), a leading enterprise software platform, surged approximately 10% in premarket trading on June 1, 2026, as Nvidia CEO Jensen Huang dismissed market fears that artificial intelligence will replace software companies, signaling renewed demand for AI-powered tools across the now stock sector.
Quick Facts
- ServiceNow surged 10% in premarket trading on June 1, 2026
- Nvidia CEO Jensen Huang said markets miscalculated AI threat to software firms
- IBM jumped 12% and Salesforce rose 6.5%, leading a broad software sector rally
- Agentic AI is expected to increase demand for software, not reduce it
Huang’s Reassurance Sparks Software Rally
Nvidia CEO Jensen Huang’s public statement that markets have miscalculated the threat artificial intelligence poses to software companies triggered a sharp reversal in investor sentiment. Huang, during the chip giant’s earnings announcement and commentary, emphasized that agentic AI — autonomous software agents that operate with minimal human intervention — will expand the software ecosystem rather than contract it. This shift in tone addressed growing investor worry that AI systems might eventually replace traditional enterprise software platforms.
ServiceNow shares climbed to $136.54 by the close of trading on June 1, up from the prior day’s $135.86 close. The jump extended a recent bull run; the stock is up approximately 36% over the past month, reflecting renewed confidence in software firms positioned to serve AI-driven enterprise automation workflows.
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Sector-Wide Rebound Across Enterprise Software
The software sector broadly participated in the rally. IBM jumped 12% in premarket trading, while Salesforce climbed more than 6.5%. The gains suggest investors are repositioning from a “AI replaces software” narrative to an “AI strengthens software demand” thesis. Enterprise software companies are betting that agentic AI will require new platforms for workflow orchestration, data integration, and compliance — precisely the services software firms already provide.
This rally built on momentum from the previous week, when software stocks began recovering from earlier declines tied to concerns that generative AI and autonomous systems would undermine the need for traditional enterprise software. The rebound reflects analyst and investor recognition that AI infrastructure—chips, servers, and software—create a complementary ecosystem rather than a zero-sum competition.
What AI’s Role in Software Means Going Forward
Huang’s framing aligns with industry direction. Enterprise software companies are integrating AI agents directly into platforms for workflow automation, customer service, and IT operations. Rather than replacing the need for ServiceNow, Salesforce, or IBM’s offerings, agentic AI is becoming a feature set within them. Software firms that successfully embed AI agents into their platforms are positioned to expand their addressable markets and deepen customer lock-in through automation capabilities.
The June 1 rebound suggests that investors are increasingly convinced that software makers will be winners in the AI era, not casualties. If this sentiment holds, software stocks could extend gains as earnings reports in coming quarters demonstrate how well enterprises adopt AI-powered features within their existing software investments.
Sources
- Yahoo Finance — ServiceNow rises 10% in premarket after Nvidia’s Huang dismisses AI disruption fears
- MarketWatch — Software stocks jump on Nvidia’s new AI chip announcement and Huang’s comments
- TipRanks — ServiceNow stock extends rally as Nvidia CEO Jensen Huang backs software firms in AI era
- Pomegra — ServiceNow shares climbed 9.78% on June 1 as Nvidia chief unveiled N1X processor and software-friendly AI vision
