# Software stocks post best month in 25 years as AI fears fade — momentum trade on Snowflake and ServiceNow

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

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-post-best-month-in-25-years-as-ai-fears-fade--f9935842-fa8c-46ba-8a57-75c976aca812

Software companies are having their best month in over two decades, proving that artificial intelligence is actually boosting their business rather than replacing them.

## Idea

For months, investors worried that AI would destroy traditional software companies. Instead, recent earnings reports from companies like Okta and Snowflake show AI is actually boosting demand for their products. ServiceNow has already surged 40% this month, leading a massive industry-wide relief rally. This suggests software stocks still have room to run as the 'AI will replace software' narrative officially falls apart.

## Key details

- Symbols: NOW, OKTA, SNOW
- Timeframes: 1D
- Tags: \#software, \#AI\_momentum, \#growth\_stocks

## Community

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- Copies: 0
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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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