# Software stocks having their best month since 2001 as AI panic flips to AI optimism — ride the leaders

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

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-having-their-best-month-since-2001-as-ai-pan--a259aa0b-7191-4cbf-89ef-14a11478632c

Software stocks just had their best month in 25 years. Companies like Snowflake, Okta, and ServiceNow surged as investors realized AI isn't going to kill off software companies — it's going to supercharge them.

## Idea

For most of the past year, investors panicked that AI would wipe out traditional software companies — the so-called 'SaaSpocalypse.' That fear is now collapsing. ServiceNow is up 40% this month, Snowflake and Okta just posted record single-day pops, and the broader software sector is having its best run since 2001. When an entire industry swings from feared to favored this violently, there's usually more upside ahead as holdout investors scramble to get back in. The three names leading this charge — ServiceNow, Snowflake, and Okta — each have clear AI strategies that are now winning over skeptical Wall Street analysts.

## Key details

- Symbols: NOW, OKTA, SNOW
- Timeframes: 1D
- Tags: \#sector\_rotation, \#momentum, \#ai\_infrastructure

## 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
- [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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