# Software's best month since 2001 — ride the AI relief rally 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-since-2001-ride-the-ai-relief-rally-in--7c74d1c1-9f63-4a21-a392-4302c8dddb8a

Software stocks just had their best month in 25 years as fears that AI would kill off software companies have faded. ServiceNow is up 40% this month, and Snowflake and Okta hit record highs as investors realized these companies are actually benefiting from AI, not being replaced by it.

## Idea

Investors had been dumping software stocks for months on fears that AI would make them obsolete — the so-called 'SaaSpocalypse.' Now that narrative is reversing hard. ServiceNow is up 40% this month alone, Snowflake and Okta just hit record highs, and the whole sector is having its best month since 2001. When a beaten-down sector rotates this violently, the move tends to keep going because institutional money that went underweight software now has to buy back in. The twist is that AI spending is actually driving more demand for these companies' products, not less. Better fundamentals justify higher prices, which forces more fund managers off the sidelines.

## Key details

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

## 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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