Software stocks having their best month since 2001 — ride the AI revival wave
Software stocks just had their best month in 25 years. Companies like Snowflake, Okta, and ServiceNow are soaring as investors realize AI is boosting — not killing — their businesses.
Idea
Earlier this year, investors worried AI would wipe out software companies — the so-called 'SaaSpocalypse.' Now the opposite is happening. AI is driving record demand for software tools from Okta's identity products to ServiceNow's workflow automation. Software stocks are having their best month since 2001, which means institutional money is pouring back in. When an entire sector reverses this dramatically, the momentum often carries further as hedge funds that bet against these stocks are forced to buy them back. Dell's blowout AI server numbers also confirm the AI spending cycle is real and expanding beyond just chips.