Zacks Investment Ideas feature highlights: ServiceNow, Bank of America and NVIDIA

For Immediate ReleaseChicago, IL – May 20, 2026 – Today, Zacks Investment Ideas feature highlights ServiceNow NOW, Bank of America BAC and NVIDIA NVDA.3 Reasons ServiceNow (NOW) Has Been SoaringAlthough the market has been volatile this week, ServiceNow shares are on a tear. Below are three reasons why:Bank of America Upgrade Boosts NOWServiceNow is a software-as-a-service enterprise workflow leader. ServiceNow's "Now" platform is used by more than 85% of Fortune 500 companies and nearly 60% of Global 2000 enterprises. Despite ServiceNow's software dominance, shares have slid 50% over the past year as investors have adopted a "sell first, ask questions later" mindset amid artificial intelligence disruption fears.However, ServiceNow's fortunes appear to be changing this week. NOW shares are up more than 10% this week following a Bank of America analyst note. Not only does Bank of America not see NOW being disrupted, but they also see the company as a top AI beneficiary, saying:"We believe ServiceNow's current position is difficult to challenge. The company began its journey with IT Service Management (ITSM), software used to log, classify, prioritize, and resolve internal technology issues. It has since expanded into adjacent enterprise service and operational workflows, including IT Operations Management (ITOM), IT Asset Management (ITAM), Security Operations (SecOps), HR service delivery, customer service, creator workflows, procurement, and broader enterprise automation. These workflows are high-volume, compliance-sensitive, deeply integrated, and difficult to replace once embedded."Meanwhile, ServiceNow has maintained a robust 97% customer renewal rate in each quarter since Q4 2019, suggesting that, despite the latest AI innovations outside of ServiceNow, customers remain loyal.Huang Comments Boost SoftwareDuring his recent keynote appearance at ServiceNow's Knowledge 2026 conference, NVIDIA's iconic CEO Jensen Huang disputed AI software disruption claims, saying, "Agentic AI is completely accretive for software companies." In a separate CNBC interview, Huang added, "AI will be one of the greatest transformations for the software industry ever. For the first time, service is software, software is service – and the service industry is 100 times bigger than the software industry. Now, for the first time, you're going to have human agents that are, of course, managed and supported by ServiceNow, augmented by AI agents that are going to be walking autonomously with humans."Price Diverging from Free Cash FlowUntil 2025, ServiceNow's share price has followed free cash flow. However, when software investors "threw out the baby with the bath water" in 2025, these metrics diverged heavily for the first time. Nevertheless, NOW's FCF has actually accelerated since the AI fears hit the stock, forcing shorts to cover their bets and bulls to buy back the stock.Bottom LineWhile the broader market experiences volatility, ServiceNow shares are suddenly skyrocketing. Wall Street incorrectly panicked that AI would disrupt the enterprise software giant, but now it is playing catch-up.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks