Software stocks having their best month since 2001 — ride the AI-fueled breakout in ServiceNow and Snowflake
Software stocks just had their best month in 25 years. The panic that AI would kill software companies has flipped into excitement that AI will supercharge them, with ServiceNow up 40% in May alone.
Idea
Software stocks just posted their strongest monthly gain since 2001, led by companies like ServiceNow (up 40% in May) and Snowflake, which both hit record highs this week. The narrative has completely flipped: investors went from fearing AI would replace software companies to betting AI will make them more profitable. When an entire sector re-rates this sharply and the fundamental story improves, momentum often carries further as institutional investors who sat out are forced to buy in. ServiceNow is the poster child for AI-boosted software and could keep leading.