Wall Street is increasingly optimistic about
actions, and it may be the right decision. The software company could be a big beneficiary of the growing trend towards artificial intelligence.
On Thursday, Piper Sandler analyst Rob Owens raised his
(ticker: NOW) price target at $600 from $525 and reaffirmed its overweight rating on the stock, citing higher future valuation assumptions for software companies under its coverage.
“More code, more applications and more data will make way for increased requirements for [software] solutions,” he wrote. “This could provide a growing wave of demand, driving a multi-year positive demand cycle for our universe.”
In Friday trading, ServiceNow stock rose 0.8% to $539.53.
Generative AI has been a popular investing theme as interest in the topic took off after OpenAI released ChatGPT last year. The technology brutally ingests text, images, and videos to create content. Chatbots like ChatGPT use a language model that generates human responses, or their best guesses, based on word relationships found by digesting what has been written previously.
Last month, chipmaker
(NVDA) and ServiceNow announced a partnership to develop generative AI technology for businesses. The two companies will work together to develop custom big-language models to extend AI functionality to new uses across the enterprise, including IT, customer service and human resources.
For example, a ServiceNow customer could use the AI models to summarize and capture data on customer service tickets, which currently take an average of seven to eight minutes per call. Officers can then use the time saved to work on more complex issues, the companies said.
During the chipmaker’s earnings call in late May, a week after the partnership was announced,
CEO Jensen Huang has repeatedly expressed excitement over his company’s deal with ServiceNow, saying it’s a great example of using generative AI capabilities to serve enterprise customers in a more meaningful way. smart.
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