Chip, storage shares fell in premarket trading. SOXL, SanDisk, Wolfspeed, Microchip down around 2%; Seagate Tech, Western Digital down over 1%.

Cloud service stocks continued to fall in premarket trading after sharp declines in prior trading session. Nebius, CoreWeave down 3% each.

ServiceNow stock rallied another 2.88% after BofA Securities initiated coverage with a Buy rating and a $130 price target, representing a significant implied upside from the prior session’s close of $103.42.

The bank set its target based on 19 times its calendar year 2027 enterprise value-to-free cash flow estimate, describing ServiceNow as occupying a mission-critical position within enterprise workflows and arguing that its deep integration makes displacement costly — and that the company stands to benefit from new AI solutions rather than be replaced by them.