# Software stocks just had their best month in 25 years — the AI panic is over, jump on the leaders

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

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-just-had-their-best-month-in-25-years-the-ai--c68679b5-3afa-4067-91d8-d3ff53e1c3ff

Software stocks just had their best month in 25 years. Investors had worried AI would kill off software companies, but now strong earnings from companies like Snowflake, Okta, and ServiceNow are proving otherwise — AI is actually boosting their business.

## Idea

For months, investors feared AI would make traditional software companies irrelevant — the so-called 'SaaSpocalypse.' Instead, this earnings season proved the opposite: AI is driving demand for software platforms like Snowflake and ServiceNow. When an entire sector goes from feared to favored in a single month, institutional money often continues flowing in for weeks as portfolio managers adjust their allocations. ServiceNow is up 40% this month alone, and the relief rally looks like it still has legs based on the improving earnings picture.

## Key details

- Symbols: IGV, NOW, OKTA, SNOW
- Timeframes: 1D
- Tags: \#sector\_rotation, \#software\_recovery, \#AI\_beneficiary

## 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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