Wall Street sometimes loves to misread particular kinds of stocks. And it is always the ones that look disrupted from the outside but are actually getting more deeply embedded on the inside.

ServiceNow (NOW) has spent much of 2026 carrying that misread. The stock fell roughly 38% year to date the week that ended May 15, weighed down by investor fears that the rise of AI would commoditize enterprise workflow software and chip away at the moat that ServiceNow has spent two decades building.

Bank of America just pushed back on that narrative — hard. The firm restarted coverage on the American software company on Monday, May 18, with a buy rating, arguing that AI is the strongest tailwind ServiceNow has ever seen, not an…