Software stocks have best month since 2001 as AI panic flips to buying frenzy — ride the momentum in ServiceNow, Snowflake, and Okta
Software stocks just had their best month in over two decades. The panic that AI would kill software companies has flipped into a buying frenzy, with ServiceNow up 40% this month and both Snowflake and Okta hitting record highs.
Idea
The fear trade that AI would wipe out software companies has completely reversed. ServiceNow's 40% monthly gain is leading a sector-wide relief rally, and Dell's blowout AI server numbers are proof that AI spending is actually lifting software demand, not crushing it. Snowflake and Okta both posted record stock moves this week on strong earnings tied to AI integration. When an entire sector goes from feared to favored this fast, institutional money is still rotating in — and momentum tends to persist for weeks after a shift this dramatic.