Cloud software provider ServiceNow was bucking Thursday's tech selloff -- and for good reason. Actually, three good reasons.

Shares were up 5.1% to $147.09 on the company's new AI tool; its firm denial of a deal to acquire Decagon, an AI customer service start-up; and two new higher price targets.

Still, to be clear, ServiceNow closed down 8.6% Wednesday and is up only 4.3% this year, compared with the S&P 500's nearly 13%.

Other software names were following ServiceNow's climb: Salesforce, Workday, and Atlassian all advanced -- 4.2%, 4.1%, and 2.7%, respectively.

Shortly before the market opened, ServiceNow announced the launch of AI Passport, a digital safety tool that controls virtual agents inside enterprises.

Just like a passport verifies a traveler's identity, the AI Passport represents a secure digital ID given to an AI agent. The tool tells agents what data they can view and what actions they can take.

The day before, ServiceNow denied reports that it is buying or even interested in buying Decagon.

"As we have previously noted, we do not see major strategic gaps that require large-scale acquisitions at this time," said COO Amit Zavery in a statement Wednesday.

The two price target hikes came from Mizuho and TD Cowen.

Mizuho's new target is $170, up from $140. The increase is based on the firm's expectation that ServiceNow will deliver strong third-quarter earnings later this month.

A key growth driver for ServiceNow, Mizuho added, is AI -- both the buy-in from its customers as well as the spending by other companies on cloud infrastructure and their use of cloud software.

TD Cowen's new price is $165, up from $140. The firm's analysis shows high software purchasing volume in the third quarter. Expanded product cross-selling and solid government contracts also contributed to the firm's positive outlook.

TD Cowen and Mizuho aren't the only ones high on ServiceNow. So does Wall Street. Of 53 analysts who cover ServiceNow, 41 have Buy ratings, according to FactSet.