# Software stocks roar back to life on AI hype — catch the rally on ServiceNow and Snowflake

_AI-generated trading idea · LONG · NOW, SNOW_

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-roar-back-to-life-on-ai-hype-catch-the-rally--06bd596d-ca8b-4743-815b-33f3dfbc6a01

Software stocks just had their best month in over two decades. Investors had worried that new AI technology would destroy these companies, but instead, they are seeing record growth.

## Idea

Earlier this year, investors panicked that AI would make traditional software companies obsolete, but the recent earnings season proved exactly the opposite. Companies like ServiceNow are showing that they can actually use AI to boost their own sales and products. This realization has sparked a massive relief rally, with the sector surging to levels not seen since 2001. As the fear subsides, investors are likely to keep pouring money back into these high-quality software names. It is a great time to catch this upward momentum.

## Key details

- Symbols: NOW, SNOW
- Timeframes: 1D
- Tags: \#software, \#ai, \#trend\_following

## Community

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## News sources

- [Software stocks wrap up best month since 2001 as talk of 'SaaSpocalypse' subsides](https://www.cnbc.com/2026/05/29/software-stocks-wrap-best-month-since-2001-as-talk-of-saaspocalypse-.html) — CNBC
- [ServiceNow’s stock soars toward historic month as AI fears fade across software](https://www.marketwatch.com/story/servicenows-stock-soars-toward-historic-month-as-ai-fears-fade-across-software-31854b69?mod=mw_rss_topstories) — MarketWatch

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