Polar Capital Exits ServiceNow as ETF Drops 22%, Stock Down 30%
Nick Evans, manager of Polar Capital’s $12 billion tech fund, exited ServiceNow holdings while increasing semiconductor weights—Nvidia accounts for nearly 10%—after an ETF tracking U.S. software dropped 22% YTD on AI disruption concerns. ServiceNow shares have slid about 30% since January but gained 4% on Wedbush’s buy recommendation.
1. Polar Capital Rebalances Away From Application Software
Nick Evans, who oversees a $12 billion global technology fund, exited ServiceNow along with SAP, Adobe and HubSpot positions, retaining only a small Microsoft stake and call options. He shifted seven of his top 10 holdings to semiconductor firms, with Nvidia representing nearly 10% of the portfolio, reflecting his view that AI poses an existential threat to traditional application software.
2. ETF Tracking U.S. Software Slides 22% Year To Date
The exchange-traded fund focused on U.S. software stocks has fallen 22% so far this year, contrasting sharply with a rally in semiconductor shares driven by AI demand. ServiceNow’s stock has underperformed, dropping around 30% since January as investors weigh the impact of AI coding tools on enterprise software revenue and long-term valuations.
3. Wedbush Sees ServiceNow Pullback as Buying Opportunity
Wedbush Securities strategist Daniel Ives described the recent ServiceNow selloff as the most severe in decades but argues AI will integrate into existing platforms rather than replace them. ServiceNow shares rebounded approximately 4% on his call, trading near 16 times forward earnings, which he views as a discounted entry point for high-quality enterprise software exposure.