ServiceNow rises as Citi lifts target to $170

The stock was up about 1% in early Wednesday trading, reflecting a market that remains cautious but receptive to signs that corporate AI budgets are translating into software orders. ServiceNow trades at $139.98 as of the latest session, above its 50-day moving average of $133.73 and near its 200-day moving average of $115.13, a setup that suggests the shares have recovered from earlier weakness but still need follow-through to confirm the move.

The call also fits a broader backdrop of rising AI spending across the technology stack. TSMC recently reported a 41% revenue increase on strong AI chip demand, while ASML posted record turnover but warned about the durability of that demand, underscoring both the scale of the opportunity and the pressure on the supply chain. In software, the question is whether AI features can move from pilot projects to recurring subscriptions, a shift that would support margins and justify higher valuations.

ServiceNow has been trying to position itself as an enterprise platform that can absorb more AI use cases without forcing customers to rip and replace existing workflows. That makes cybersecurity another important lever, since security budgets tend to hold up better than discretionary software spending and can help cushion demand if CIOs slow down elsewhere.

For investors, the key issue is whether AI becomes a growth accelerator for ServiceNow or just another feature set that takes time to monetize. Citi’s higher target suggests the firm sees the former, but the market will likely want to see that confidence backed by bookings, guidance and customer expansion in coming quarters.