# Software stocks having their best month since 2001 — ride the AI-fueled rally in Okta, Snowflake, and ServiceNow

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

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-having-their-best-month-since-2001-ride-the--226111d8-2ed1-4846-a2fa-b9910008612d

Software stocks just completed their strongest month since 2001. The panic that AI would kill software companies has reversed — now investors believe AI is supercharging their growth instead.

## Idea

Software stocks just posted their best monthly gain in 25 years, which means institutional money is rotating back into the sector aggressively. Three separate catalysts are driving this: Okta crushed earnings thanks to AI-driven demand, ServiceNow surged 40% in a single month as AI fears evaporated, and Snowflake also hit record highs. When an entire sector moves this powerfully together, it usually has legs because fund managers who missed the first move are forced to buy in. The 'AI will kill software' narrative has fully flipped to 'AI will supercharge software,' and that new story is just getting started.

## Key details

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

## Community

- Upvotes: 0
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## News sources

- [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
- [Okta Stock Surges On Earnings Beat As AI Drives Identity Product Demand](https://www.investors.com/news/technology/okta-stock-okta-earnings-news-q12026/?src=A00220&yptr=yahoo) — Investor's Business Daily
- [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

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