ServiceNow Rises Amid AI Sell-Off; Adobe Gains as Capital Rotates into Enterprise Software
ServiceNow (NYSE:NOW) and Adobe (NASDAQ:ADBE) rose 5% and 4%, respectively, on Monday amid a broader rotation of capital from artificial intelligence infrastructure to enterprise software. The move followed an essay by Anthropic CEO Dario Amodei urging AI labs to slow development pace, which has shifted investor sentiment away from semiconductors toward more stable software plays. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) gained 2%, while the Invesco QQQ Trust (NASDAQ:QQQ), a semiconductor-heavy fund, fell 2%. This divergence highlights an internal shift within technology stocks rather than broad-based growth. ServiceNow and Adobe are recovering from significant year-to-date losses—9% and 25%, respectively—but remain under pressure. Analysts raised price targets for ServiceNow ahead of the rally, citing strong AI product performance and contract value crossing $1 billion in its July quarter. Salesforce (NYSE:CRM) also rose slightly as it prepares to host Amodei at Dreamforce while awaiting a Federal Reserve rate decision that could influence market dynamics.
Tickers: $ADBE $CRM $IGV $NOW $QQQ
Topics: AI enterprise software rotation semiconductors