# Software stocks have their best month in two decades — ride the AI momentum in ServiceNow

_AI-generated trading idea · LONG · NOW, SNOW_

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-have-their-best-month-in-two-decades-ride-th--8ba47ff9-6f31-46b9-af22-b474fa8ca066

Enterprise software companies are having their best month since 2001, erasing earlier fears that AI would destroy their business. ServiceNow is leading the charge, with its stock up 40% this month alone as its AI product strategy pays off.

## Idea

For months, investors worried that AI would make traditional software companies obsolete, but strong earnings are proving the exact opposite. Software companies like ServiceNow are successfully selling new AI-integrated products to their massive customer bases. When an entire sector goes from being deeply feared to strongly bullish in just a few weeks, it often signals the start of a longer upward trend. As long as the broader stock market keeps rallying, these software leaders have room to run higher.

## Key details

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