MW ServiceNow, Adobe stocks jump as Nvidia's new AI chip sparks software rally

By Christine Ji

As AI agents spur demand for more, not less, software, major enterprise cloud platforms are staging a comeback

Shares of ServiceNow rose over 40% in May.

Shares of major software companies - such as ServiceNow, Asana and Adobe - continued their upward momentum Monday morning as new hardware developments from Nvidia encouraged further rotation into the sector.

Nvidia (NVDA) just announced RTX Spark, an Arm-based central processing unit for personal computers. The "superchip," brought about in partnership with Microsoft $(MSFT)$, aims to power artificial-intelligence agents specifically for consumer use in laptops and mini PCs.

RTX Spark will allow consumers to run large language models or an army of AI agents locally on Windows without needing to use Apple's $(AAPL)$ Mac Minis, Radio Free Mobile founder Richard Windsor wrote in a Monday note.

More: Intel and AMD shares fall more than Nvidia rises on new PC superchip

The news suggested to investors that demand for software will increase going forward, alleviating fears that vibe-coded AI software will replace traditional enterprise solutions. Nvidia CEO Jensen Huang envisions a future where AI supercomputers running complex workloads will be commonplace in people's homes - and that would require more, not fewer, software services involving data infrastructure, governance and cybersecurity.

The iShares Expanded Tech-Software Sector ETF IGV rose 4% in Monday premarket trading.

Leading the rally were shares of workflow-automation software company ServiceNow (NOW), with shares soaring 10% premarket. ServiceNow's stock is poised to continue its upward trajectory after a record monthly performance in May, rising over 40% last month.

ServiceNow has positioned itself to capitalize on the agentic AI shift with its AI Control Tower, which allows enterprises to control, govern and audit agents. The company is also expanding its cybersecurity offerings through recent acquisitions.

Read: ServiceNow's stock soars to a historic month as AI fears fade across software

Shares of Adobe $(ADBE)$ rose 7%. The company had once been the poster child of "AI eating software" fears. Shares of the cloud-based project management company Asana $(ASAN)$ were up 6%.

The recent software rally has offered some vindication for bulls who stood by their contrarian calls after a brutal selloff wracked the sector earlier this year. Uploads to software developer platform GitHub have tripled in 2026 alone, and job postings for U.S. software engineers are up 15% over the same period, Windsor pointed out.

"This indicates that AI is making software engineers more productive, which in turn means that rational employers will want more of them, not less," Windsor wrote.

It's also a sign that the "SaaSpocalypse" has been "overdone," Windsor added, pointing to recent strength in software earnings. Last week cloud-based data platform Snowflake (SNOW) wowed investors with an earnings beat that sparked a 46% stock surge.

Still, many of the enterprise software stocks that were hit hardest have yet to fully recover. Shares of ServiceNow are still down 16% so far this year. Shares of Asana are down 44%, and shares of Adobe have fallen 26% over the same period.

-Christine Ji

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June 01, 2026 09:17 ET (13:17 GMT)

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