Software's best month in 25 years still has legs — ride the AI momentum wave on Okta and Snowflake
Software stocks just had their best month in 25 years as fears that AI would kill off software companies completely vanished. Okta, Snowflake, and ServiceNow have all surged, driven by strong earnings and AI product launches.
Idea
Software stocks are wrapping up their strongest month since 2001 because investors realized AI isn't replacing software companies — it's supercharging them. Okta just posted record stock gains on an earnings beat tied to AI-driven identity products, and ServiceNow is up 40% this month alone. When an entire sector reverses from 'left for dead' to leading the market, the momentum tends to persist for weeks as hedge funds and institutional money scramble to rebuild positions. The combination of blowout earnings and fading fear makes this a classic 'wall of worry' climb that often runs further than anyone expects.