Zscaler (ZS) Surges 10% on Guggenheim Upgrade and Nvidia CEO's AI Endorsement

Shares of Zscaler (ZS) jumped 10% on June 2, 2026, after investment firm Guggenheim upgraded the cloud security platform to “Buy” from “Neutral” and Nvidia CEO Jensen Huang voiced strong support for enterprise software companies. The double catalyst lifted the stock from a prolonged slump. Guggenheim set a $214 price target, marking a sharp reversal from recent target cuts by Wells Fargo and Evercore ISI. Those downgrades came after Zscaler’s fiscal third-quarter results, which beat estimates but included weaker full-year guidance. The upgrade signals faith in potential growth despite near-term headwinds. Zscaler remains 54.3% below its 52-week high of $336.27, down 30.3% year-to-date. At Computex, Huang said it is “an incredible time” to be a software company, directly countering fears that AI agents would erode SaaS business models. His comments added to a broader software rally triggered by Snowflake’s strong results days earlier, which showed AI driving more consumption of data platforms rather than displacing them.