Software stocks having their best month in decades — ride the momentum on ServiceNow and Snowflake
Software companies are wrapping up their best month since 2001 as investors get excited about their AI strategies again. The fear that AI would destroy software companies has flipped into optimism that it will supercharge them.
Idea
For months, investors worried that AI would disrupt traditional software companies, but strong earnings from industry leaders have completely changed the narrative. ServiceNow has surged 40% this month alone, leading a massive relief rally across the entire sector as fear fades. When a beaten-down group of stocks experiences a sudden shift in sentiment like this, it often signals the start of a longer upward trend. Riding the momentum in high-quality software names allows traders to benefit from this renewed optimism as institutions rotate back into the space.