# Software stocks having their best month in 25 years — ride the AI-fueled rally on Snowflake, Okta, and ServiceNow

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

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-having-their-best-month-in-25-years-ride-the--57ed017e-6e21-4757-86d3-4e87ac645cf2

Software stocks just had their best month in 25 years. Fears that AI would kill software companies have flipped — now investors see AI as a growth turbo-charger for names like Okta, Snowflake, and ServiceNow.

## Idea

Software stocks are wrapping up their strongest month since 2001, driven by a complete reversal in sentiment — the fear that AI would replace software companies has been replaced by excitement that AI is actually boosting their revenue. Okta just crushed earnings thanks to AI-driven identity products, Snowflake saw a record stock pop, and ServiceNow is up 40% in a single month. When an entire sector rotates from hated to loved this fast, momentum tends to carry further as skeptics are forced to jump in.

## Key details

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

## Community

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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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## Related

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