UBS has lowered its rating on ServiceNow Inc (NYSE:NOW, XETRA:4S0) to Neutral from Buy, saying its earlier conviction that the company was best positioned among application software firms in the AI era has weakened amid emerging signs of budget pressure in non-AI software spending.
The bank noted that while customers continue to view ServiceNow as a core “system of record” for IT assets, there is growing interest in using AI to build lighter workflow tools on top of existing systems.
CoreWeave (NASDAQ:CRWV) shares moved over 13% higher on Friday, following the company’s announcement of a new multi-year agreement with Anthropic to support the development and deployment of its Claude family of artificial intelligence models.
The partnership will see CoreWeave provide cloud infrastructure to run Anthropic’s AI workloads at production scale, with compute capacity expected to come online later this year.
Software stocks traded lower on Friday amid mounting investor concerns about how rapidly advancing artificial intelligence (AI) could reshape the sector’s long-term earnings outlook, extending a broader AI-driven slump.
The latest pressure followed renewed attention on updates from AI company Anthropic, including reports that it has developed a highly capable frontier model described as too advanced for public release.
Shares in Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) rose 5% to 37.1p on Friday after the rare earths company closed a £12.5 million investment round to fund a potential acquisition in Germany and expand its processing operations.
The raise comprised a placing of 30.9 million shares at 33p each, generating around £10.2 million, alongside a retail offer, a subscription and a Canadian-listed issuer financing exemption offering.
Shares in Mercantile Ports and Logistics rose 50% on Friday, extending its surge from the previous session when the company outlined plans to fully repay its debt and step up legal action to reclaim its Karanja terminal in Maharashtra, western India.
The group has offered to redeem 100% of its outstanding debt before the Supreme Court of India.
The world's largest contract chipmaker has beaten forecasts again, adding to a run of hardware results that suggest the AI investment cycle is holding firm.
The AI bubble shows no sign of popping. Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) reported first-quarter revenue of $35.71 billion on Friday, up 35% on the year and ahead of analyst estimates, driven by demand from AI applications. Its shares rose 2.3% on the day and are up 29% so far this year.