Software stocks just had their best month since 2001 — catch the momentum in Snowflake, Okta, and ServiceNow
Software stocks just had their best month in 25 years. The doom-and-gloom narrative that AI would kill software companies has completely flipped — now investors believe AI will actually help these companies grow faster. ServiceNow is up 40% this month, and Snowflake and Okta just hit record highs.
Idea
Software stocks are wrapping up their strongest month since 2001, which is the kind of broad sector move that doesn't usually reverse overnight. The narrative has shifted from 'AI will replace software' to 'AI will supercharge software' — and Snowflake and Okta both just hit record highs to prove it. ServiceNow leading with a 40% monthly gain sets the tone for the whole group. Hedge funds that were betting against these stocks are being forced to cover, which creates additional buying pressure. For investors who missed the initial move, the momentum tends to persist for weeks after a regime shift this dramatic.