# AI fears fade, software stocks catch fire — ride the rally in Snowflake and ServiceNow

_AI-generated trading idea · LONG · NOW, SNOW_

> Canonical page: https://commonquant.ai/research/for-you/ai-fears-fade-software-stocks-catch-fire-ride-the-rally-in-s--d6093255-b032-4b33-b9f8-7a531ebd0db6

Software stocks just had their best month in over two decades. Investors had worried AI would kill software companies, but strong earnings from Snowflake, Okta, and ServiceNow prove they are thriving.

## Idea

Software companies are wrapping up their strongest month since 2001 as investors realize AI is actually boosting their business rather than destroying it. ServiceNow has surged 40% this month alone, leading a massive relief rally across the sector. Snowflake and Okta also saw record stock jumps this week. When an entire sector reverses a long slump this violently, it usually has further to run as investors who bet against it are forced to buy back in.

## Key details

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