# Investors are rotating out of high-flying semiconductor stocks and channeling capital into beaten-down enterprise software names.

*business · news · 2026-05-19 · Benzinga*

## Key points

- Bank of America Securities reinstated coverage on ServiceNow with a buy rating and $130 price target.
- Investors are rotating capital from semiconductor stocks into enterprise software, benefiting ServiceNow.
- ServiceNow integrated Experian's Ascend platform, deploying AI agents for high-regulation tasks like fraud verification.
- ServiceNow aims to sustain gross margins above 80% while scaling Now Assist, countering AI margin erosion concerns.
- Management reaffirmed a 2030 annual subscription revenue target exceeding $30 billion.

**Companies:** Bank of America, ServiceNow, Experian
**Countries:** United States

[Read the full story on Benzinga](https://www.benzinga.com/trading-ideas/movers/26/05/52666832/whats-going-on-with-servicenow-stock-tuesday)

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