# Software stocks notching best month since 2001 as AI fears flip to AI excitement — ride the Snowflake, Okta, and ServiceNow wave

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

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-notching-best-month-since-2001-as-ai-fears-f--ff64d734-99fa-4c9d-a612-b3dc57aef9d3

Enterprise software stocks are having their best month in 25 years. Companies like Snowflake, Okta, and ServiceNow are surging as investors realize AI is boosting their business rather than threatening it.

## Idea

Earlier this year, investors panicked that AI would wipe out software companies — the so-called 'SaaSpocalypse.' Now the opposite is happening: AI is driving record demand for identity management (Okta), data platforms (Snowflake), and workflow automation (ServiceNow). When an entire sector reverses a fear-driven selloff this dramatically — software's best month since 2001 — it usually means institutional money is rotating back in for a multi-month run, not a quick flip. Snowflake and Okta both just posted record stock pops this week on their AI strategies, and ServiceNow is up 40% this month alone. The shift from 'AI will kill software' to 'AI is supercharging software' is the kind of narrative change that fuels sustained rallies.

## Key details

- Symbols: IGV, NOW, OKTA, SNOW
- Timeframes: daily
- Tags: \#ai\_software, \#trend\_continuation, \#sector\_rotation

## 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
- [Palantir Soars 10% as Dell Earnings Beat Validates Their AI Factory Partnership, Snowflake Lifts Software Rally](https://finance.yahoo.com/markets/stocks/articles/palantir-soars-10-dell-earnings-150720310.html) — Yahoo Finance
- [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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