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

_AI-generated trading idea · LONG · NOW, SNOW_

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-having-their-best-month-since-2001-ride-the--72c73dba-62ba-4566-949a-7d85a8e0b9ca

Software stocks just had their best month in 25 years. The panic that AI would kill software companies has flipped into excitement that AI will supercharge them, with ServiceNow up 40% in May alone.

## Idea

Software stocks just posted their strongest monthly gain since 2001, led by companies like ServiceNow (up 40% in May) and Snowflake, which both hit record highs this week. The narrative has completely flipped: investors went from fearing AI would replace software companies to betting AI will make them more profitable. When an entire sector re-rates this sharply and the fundamental story improves, momentum often carries further as institutional investors who sat out are forced to buy in. ServiceNow is the poster child for AI-boosted software and could keep leading.

## Key details

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

## 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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