Software's best month since 2001 as 'AI will kill us' panic fades — ride the momentum on ServiceNow, Snowflake, and Okta
Software stocks just had their best month since 2001. The panic that AI would destroy software companies has flipped — now investors see AI making these businesses stronger. ServiceNow is up 40% in May alone, and Snowflake and Okta both notched record single-day gains this week.
Idea
Earlier this year, Wall Street was writing off software companies, warning of a 'SaaSpocalypse' where AI would make them obsolete. That narrative has completely reversed. ServiceNow has surged 40% this month, leading a broad software relief rally. Snowflake and Okta both posted record stock jumps after earnings showed their AI strategies are working. When an entire sector goes from feared to favored this fast, institutional money is still rotating in — meaning the move likely isn't over. The companies actually proving AI monetization should keep outperforming.