ServiceNow Wins a Wall Street Nod as AI Spending Splits the Software Sector
Published on 09/11/2026 at 10:12 | Editorial boerse-global.de
BTIG Research gave ServiceNow shareholders something to cheer on Wednesday, lifting its price target on the software maker from $150 to $170 and reiterating a buy rating. The upgrade lands at an awkward moment for the stock, which has spent the past week absorbing losses even as its underlying business keeps expanding.
A bumpy stretch, but the monthly trend still points up
ServiceNow closed Thursday at EUR 112.80, a gain of just 0.04% on the day. Over the past seven sessions the shares have shed 7.3%, yet the monthly picture is brighter, with a 4.4% advance. The relative strength index sits at 50.7 — squarely neutral territory, neither stretched to the upside nor the downside.
Volatility, however, remains a live issue. Annualized 30-day volatility of 56% tells investors to brace for more swings. At a market capitalization of roughly EUR 125.36 billion, ServiceNow still ranks among the heavyweights of the software industry.
BTIG's move suggests at least part of Wall Street views the recent pullback as an opening rather than a warning sign. Attention is increasingly fixed on how quickly the company can convert its artificial intelligence push into revenue.
Should investors sell immediately? Or is it worth buying ServiceNow?
Recognition on the awards circuit
The analyst upgrade coincided with another piece of news: ServiceNow has been named a finalist for the AFP Pinnacle Awards 2026, which honor innovative, AI-driven solutions. The nomination reinforces how closely the company is now identified with enterprise AI in the minds of the market.
The next hard data point arrives on October 28, when ServiceNow reports quarterly results. Until then, the market's reaction to the BTIG call and the company's positioning in the AI segment will serve as the key gauge of whether the recent turbulence reflects a genuine shift or merely noise.
Two tiers emerge in the software and chip space
ServiceNow's situation mirrors a broader divide running through the technology sector. Established software names with demonstrable AI revenue are being rewarded, while speculative small-caps without reliable sales are being punished. ServiceNow and Salesforce both post double-digit growth and expanding AI contract volumes, and their share prices have largely reflected that. ams-OSRAM sits somewhere in the middle, caught between a future-facing strategy and the drag of restructuring. BrainChip and IperionX illustrate just how unforgiving the market can be toward early-stage stories.
ServiceNow's own fundamentals support the bullish case. Subscription revenue grew roughly a quarter, and AI contract volume crossed the $1 billion mark for the first time. Agentic AI deployments have multiplied ninefold in nine months. The company has also pushed deep into AI-native security and identity through a string of billion-dollar acquisitions, including Armis Security, Veza Technologies and Moveworks.
Valuation is the counterargument. ServiceNow trades at a price-to-earnings ratio above 56, while the software sector averages around 27. BTIG's raised target implies the firm expects near-term AI monetization to justify the premium. The stock also caught a tailwind from strong quarterly results at Salesforce — a reminder of how tightly sentiment across the software group is now linked.
Salesforce's buying spree sets the tone
Salesforce itself has climbed 25% over the past month as its narrative has shifted. The shares now trade at EUR 210.25, though they remain down 7.3% year-to-date — a measure of how steep the earlier decline was. The company is reportedly in preliminary talks to acquire AI market research platform Listen Labs in a deal worth about $2 billion. Listen Labs is said to have turned down an already-signed $125 million term sheet from Menlo Ventures. If completed, it would mark Salesforce's fourth AI acquisition this year, following Fin (formerly Intercom), Informatica and Convergence. The multibillion-dollar Fin transaction, which CEO Marc Benioff framed as pairing the "best customer agent" with the "best CRM," has already closed.
Operationally, Salesforce provides a solid base for the shopping spree: annual revenue rose nearly 10%, and profit climbed by more than a fifth. A forward P/E of 19 looks moderate next to Microsoft's 25. TD Cowen analyst Derrick Wood recently raised his target from $280 to $300 and maintained a buy rating ahead of the company's investor day.
ams-OSRAM: mid-restructuring, mid-pack
The Austrian sensor maker's stock has held up well, gaining 3.7% to EUR 19.50 — 37% above its 200-day moving average of EUR 14.25. That leaves it well clear of its EUR 7.38 annual low, though still below its EUR 26.70 peak.
ams-OSRAM is in the middle of a radical slimming-down. The sale of its non-optical sensor business to Infineon has closed, and the CMOS image sensor unit is going to Indie Semiconductors. CEO Aldo Kamper describes the shift as a sharpening of focus on Digital Photonics as the central growth driver, with early milestones reached on microLED light modules for next-generation AR glasses.
ServiceNow at a turning point? This analysis reveals what investors need to know now.
The financials are mixed. Second-quarter revenue rose 4% to EUR 805 million, beating expectations, and the core semiconductor business grew 13% on automotive demand. Adjusted earnings per share missed forecasts, however. Management expects negative free cash flow of EUR 300 million for the current year, with a turn positive not anticipated until 2027. Analysts are split: at an average price target of CHF 17.13, two buy ratings face three sell ratings.
BrainChip and IperionX: the small-cap squeeze
BrainChip's predicament captures the dilemma facing many early-stage semiconductor firms. The stock trades at EUR 0.0802 after a 3.5% decline on the day, and has lost roughly a quarter of its value year-to-date. An RSI of 43.9 points to persistently weak demand.
The company's latest investor update positions it as a global leader in ultra-low-power edge AI. The reality is more modest: quarterly revenue came in at just $1.22 million, accompanied by a small per-share loss. CEO Sean Hehir nonetheless expressed confidence in the direction, noting that the planned December tape-out of the AKD2500 chip remains on schedule and that Akida Pico technology is ready for deployment. On the partnership front, the collaboration with Neuromorphyx has expanded after that partner took delivery of 1,200 chips and entered a development partnership for the BrainBoard1500 in August. With roughly AUD 20 million in cash, however, BrainChip's window to turn technological progress into scalable revenue is narrowing.
IperionX is among the sector's hardest-hit names. The stock fell 2.6% to EUR 1.66, hovering just above its 52-week low of EUR 1.60. It sits 44% below its 200-day moving average and has lost more than half its value over twelve months. The selloff has come despite a run of positive operational news, most recently a second U.S. Army order for domestic titanium production. Titanium is considered a strategically vital material for aerospace, advanced manufacturing and technology applications, but that has not been enough to offset weakness across the critical minerals segment. The gap between price action and analyst opinion is striking: the average price target stands at $60.33, far above current levels, while an RSI of 35.6 is approaching oversold territory — a technical signal that a stabilization could be near.
What to watch
For ServiceNow and Salesforce, the pace of AI monetization remains the decisive variable — whether the Listen Labs deal goes through, and how quickly agentic solutions gain traction in the market. At ams-OSRAM, eyes are on the November quarterly report and whether the photonics strategy is delivering tangible results. BrainChip must show that announced partnerships translate into larger, more predictable revenue before its cash reserves become a liability. IperionX depends largely on whether sentiment in critical minerals stabilizes and further U.S. defense orders can offset the recent slide. The gap between proven and promised AI stories looks set to shape the sector for weeks to come.
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ServiceNow Stock: New Analysis - 11 September
Fresh ServiceNow information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
