# Software stocks having their best month since 2001 — ride the AI-fueled comeback wave

_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--35624648-dca2-4050-980a-494b680ac906

Software stocks just had their best month in 25 years. Companies like ServiceNow (up 40% in May), Okta, and Snowflake are leading the charge as investors realize AI is boosting — not killing — software demand.

## Idea

The narrative that AI would destroy software companies has completely flipped — now investors see AI as a growth catalyst. ServiceNow's 40% monthly gain and record moves in Okta and Snowflake show institutional money pouring back into the sector. When an entire industry group reverses a doom narrative this decisively, momentum tends to persist for weeks as latecomers scramble to reposition. Buying a basket of leading software names or the sector ETF captures this tailwind without single-stock risk.

## Key details

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

## Community

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## News sources

- [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
- [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

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