Enterprise software staged a decisive separation from chip-equipment stocks on Friday, with ServiceNow, Snowflake, Datadog, and MongoDB each surging between 7% and 10% on AI spending momentum, while Applied Materials and Lam Research gave back a portion of Thursday’s post-Micron gains, pulling the SOXX semiconductor ETF down 5.64%. The S&P 500 closed near flat at 7,354.02, off 0.05%, and the Nasdaq Composite slipped 0.24% to 25,297.62, masking a sharp intra-sector divide between software gainers and silicon losers.
Today’s biggest movers
| Ticker | Close | Day | 1mo | YTD |
|---|---|---|---|---|
| $NOW | $98.34 | +9.85% | -9.56% | -33.31% |
| $SNOW | $248.96 | +9.65% | +4.08% | +14.88% |
| $DDOG | $239.77 | +8.52% | +6.45% | +79.24% |
| $MDB | $314.01 | +6.77% | -3.58% | -21.43% |
| $MSFT | $372.97 | +5.71% | -12.65% | -21.14% |
| $AMAT | $626.84 | -6.16% | +39.40% | +133.14% |
| $LRCX | $379.09 | -5.66% | +19.21% | +104.85% |
| $ARM | $334.27 | -3.87% | -0.30% | +191.35% |
| $AVGO | $365.02 | -3.67% | -14.43% | +5.01% |
| $INTC | $128.32 | -3.42% | +6.15% | +225.85% |
ServiceNow surges 9.85% as enterprise AI platform demand accelerates
ServiceNow, Inc. (NYSE: NOW) gained 9.85% to close at $98.34, its best single-session performance in months, as investors rotated into cloud-native AI software platforms ahead of the Q2 earnings season. The stock opened at $90.44 and held its gains throughout the session on volume of 21.3 million shares. ServiceNow raised full-year 2026 subscription revenue guidance to $15.735-15.775 billion in its Q1 report, implying 20.5%-21.0% constant-currency growth, citing Agentic AI deployments across its Now Platform as a key driver of accelerating enterprise renewals. Wall Street maintains a “Strong Buy” consensus on the stock. Friday’s close recovers significant ground from a 33% year-to-date drawdown that had weighed on the name since January.
The move underscores a broader re-rating of enterprise AI workflow software. Peers Snowflake, Datadog, and MongoDB all surged alongside NOW, suggesting institutional reallocation from semiconductor positions into recurring-revenue software is now well under way. For context on the sector’s earlier June weakness, see our recap of the June 23 chip-led AI stock selloff.
Snowflake jumps 9.65%, extending its post-earnings recovery
Snowflake Inc. (NYSE: SNOW) advanced 9.65% to $248.96, continuing a recovery that began after CEO Sridhar Ramaswamy described the company’s first fiscal quarter of 2027 as “a clear inflection point” in Snowflake’s AI journey. Snowflake reported product revenue of $1.33 billion in the May 27 quarter, up 34% year-over-year. Scotiabank set a $320 price target on June 8; HSBC lifted its target to $289 following the strong results. The 51-analyst consensus tracked by S&P Global remains “Strong Buy,” with an average price target of $287.91. Friday’s close of $248.96 sits approximately 15% below the consensus target, leaving room for further re-rating. Volume reached 25.4 million shares, well above the 30-day average.
Datadog climbs 8.52% after Truist upgrade; AI observability demand builds
Datadog, Inc. (NASDAQ: DDOG) rose 8.52% to $239.77, extending its 2026 gain to 79.24%. Truist Securities upgraded DDOG to Buy on June 15 and set a $300 price target, citing urgency in enterprise AI adoption and customers still in early stages of agentic deployments that require heavy observability and monitoring infrastructure. Datadog crossed $1 billion in quarterly revenue for the first time in Q1 2026, reporting $1.006 billion - 4.7% ahead of consensus estimates of $961.3 million - with 32% year-on-year growth marking the fourth consecutive quarter of revenue acceleration. The stock briefly traded above its average analyst price target of $241.36 during intraday highs before settling at $239.77 at the close.