# Software stocks stage historic comeback — jump on the AI-driven relief rally

_AI-generated trading idea · LONG · NOW, SNOW_

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-stage-historic-comeback-jump-on-the-ai-drive--b03b169a-b6ac-469e-93aa-11ba3cfcb192

Software stocks are having their best month in over two decades as investors realize AI will boost, not destroy, these businesses. Companies like ServiceNow and Snowflake are leading the charge with massive stock rallies.

## Idea

For the past year, investors feared AI would make traditional software obsolete, but May's historic rally proves that narrative wrong. Companies like ServiceNow and Snowflake are successfully integrating AI into their platforms, driving a relief rally that pushed the sector to its best month since 2001. As the broader market digests the reality that AI actually increases demand for enterprise software, these industry leaders are likely to attract continued institutional buying.

## Key details

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

## 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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