Software stocks just had their best month since 2001 — ride the AI relief rally on ServiceNow, Palantir, and Snowflake
Software stocks just had their best month since 2001. The panic that AI would wipe out software companies has flipped — now investors see AI as a growth engine for the sector. ServiceNow, Snowflake, Okta, and Palantir all surged this week.
Idea
Software stocks are wrapping up their strongest month in 25 years as the narrative flips from 'AI will kill software' to 'AI will supercharge software.' ServiceNow is up 40% this month alone, leading a broad relief rally. Dell's blowout AI server earnings validated the infrastructure buildout and lifted partners like Palantir 10% in a single day. When an entire sector re-rates this fast after being left for dead, momentum tends to persist as institutional money finishes repositioning. The trade is to ride the sector leaders while the trend is strong, but use a trailing stop to protect gains if sentiment reverses.
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News sources
- Software stocks wrap up best month since 2001 as talk of 'SaaSpocalypse' subsides — CNBC
- Palantir Soars 10% as Dell Earnings Beat Validates Their AI Factory Partnership, Snowflake Lifts Software Rally — Yahoo Finance
- ServiceNow's stock soars toward historic month as AI fears fade across software — MarketWatch