# Software's best month in 25 years — ride the AI-fueled breakout in Snowflake, Okta, and ServiceNow

_AI-generated trading idea · LONG · NOW, OKTA, SNOW_

> Canonical page: https://commonquant.ai/research/for-you/software-s-best-month-in-25-years-ride-the-ai-fueled-breakou--0ff5d204-cd58-44db-987e-0311334f8a0d

Software stocks just had their best month in 25 years. The panic that AI would kill software companies has flipped — now investors believe AI is actually supercharging their growth.

## Idea

Software stocks were left for dead earlier this year on fears that AI would make them obsolete. That narrative has completely reversed — ServiceNow is up 40% this month alone, and both Snowflake and Okta just hit record highs. When an entire sector goes from hated to loved this fast, there's usually more fuel in the tank as holdout investors are forced to jump back in. The key is that these companies are now proving they can grow revenue by embedding AI into their products, which is exactly what Wall Street wanted to see.

## Key details

- Symbols: NOW, OKTA, SNOW
- Timeframes: 1D
- Tags: \#software, \#momentum, \#ai\_beneficiary

## 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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## Related

- [NOW trade ideas](https://commonquant.ai/stocks/now)
- [OKTA trade ideas](https://commonquant.ai/stocks/okta)
- [SNOW trade ideas](https://commonquant.ai/stocks/snow)
- [Latest market news](https://commonquant.ai/news)