Shares of ServiceNow surged approximately 8.4% on Monday afternoon, according to Detik Finance, after a bullish analyst note from Bank of America countered recent market fears about artificial intelligence disruption.

The rally came as a relief for investors who had seen the stock decline amid broader concerns that emerging AI platforms could replace traditional enterprise software.

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Analyst Rejects AI Displacement Fears

Bank of America analyst Tal Liani restarted coverage on ServiceNow with a Buy rating and a $130 price target, well above its $95 opening price.

Liani argued that ServiceNow's deeply integrated software infrastructure makes it difficult to displace, even by advanced AI tools like Anthropic's Claude Code.

He described the company's platform as a "deeply embedded mission-critical position within enterprise workflows."

It serves as the system that governs, routes, approves, and audits activity across organizations, making replacement costly and complex.

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The analyst also projected that if ServiceNow successfully navigates the evolving tech landscape, it could achieve substantial revenue growth and high free cash flow margins through 2028.

Market Context and Recovery

ServiceNow had previously suffered from a broader market downturn affecting software-as-a-service providers.

Investor fears were fueled by the rise of AI platforms that could potentially automate tasks traditionally handled by enterprise software.

However, Liani's note provided a counter-narrative, emphasizing the stickiness of ServiceNow's products within large organizations.

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The stock's 8.4% gain reflects renewed confidence among traders that the company can adapt to and benefit from AI trends rather than be disrupted by them.

ServiceNow's platform is used by thousands of enterprises for IT service management, workflow automation, and customer service operations.

Its deep integration into daily business processes creates high switching costs for clients, a key factor in Liani's bullish outlook.

The positive note also lifted sentiment across the enterprise software sector, with several peers seeing modest gains.

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Investors will now watch for ServiceNow's next earnings report to see if the company's financial performance matches the analyst's optimistic projections.