Recent Developments
ServiceNow’s (NYSE:NOW) shares rose by 5% during mid-day trading after Nvidia delivered impressive Q1 earnings that exceeded analysts’ expectations. Nvidia’s next quarter revenue forecast was more than 50% higher than consensus, which positively impacted ServiceNow’s shares. In May 2023, ServiceNow had announced its partnership with Nvidia to enhance generative AI capabilities by leveraging the chipmaker’s large language models. ServiceNow has been investing in and expanding its AI capabilities.
The Market’s Response
ServiceNow’s shares have demonstrated significant volatility over the past year, with 18 moves over 5%. Today’s rise indicates that the news is important, but the market does not consider it a fundamental change in the business. The previous significant move occurred eight days ago when ServiceNow announced its first-ever share buyback program during its investor day session. ServiceNow’s shares have gone up by 37.9% since the beginning of the year. Investors who invested $1,000 in ServiceNow’s shares five years ago would now have an investment worth $3,010.
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