ServiceNow and Salesforce jump 4% after Guggenheim upgrade despite AI fears

Key Facts

1ServiceNow and Salesforce shares rose 4% after Guggenheim upgraded the software companies, arguing valuations are attractive despite AI risks.

After a tough year for enterprise software stocks due to AI concerns, ServiceNow (NOW) and Salesforce (CRM) surged 4% after Guggenheim upgraded both companies, citing attractive valuations at current levels. According to a report from Invezz, Guggenheim believes AI-related risks are largely overblown, offering a buying opportunity for investors.

The upgrade follows a period of underperformance in the enterprise software sector, where generative AI developments have pressured traditional business models. As of the close on June 30, 2026, NOW traded at $99.28 while CRM closed at $156.66, per market data. Despite the upgrade, concerns remain about these companies' ability to sustain revenue growth amid AI competition.

Investors should watch upcoming quarterly earnings reports to gauge AI impact on revenue. Broader monetary policy trends and recent US inflation data could also affect growth stock valuations. NOW is trading just below the $100 psychological level, while CRM moves within a $154-$157 range, potentially offering traders entry or breakout opportunities.