Software's best month in 25 years as AI fears flip to AI fever — ride the rally in Snowflake, Okta, and ServiceNow
Software stocks just posted their best monthly gain in 25 years as investors realized AI isn't killing software companies — it's fueling their growth. Okta and Snowflake both hit record highs after strong earnings, and ServiceNow is up 40% this month alone.
Idea
Earlier this year, many investors feared AI would make traditional software companies obsolete — a panic dubbed the 'SaaSpocalypse.' That fear has now flipped completely: AI is actually driving demand for software products. Okta reported that its AI-powered identity tools are boosting sales, Snowflake's AI data strategy is winning over Wall Street, and ServiceNow has surged 40% in a single month. When an entire sector goes from hated to hot, the rally tends to keep going as holdout investors are forced to jump back in. Spreading the bet across a few top names protects you if any single company stumbles.