CommonQuant.ai Research
AI-generated trading idea · LONG · NOW, SNOW
Software stocks having their best month in 25 years — ride the AI relief rally
Software stocks are having their best month since 2001. The panic that AI would wipe out software companies has flipped — now investors believe these firms are actually riding the AI wave.
Idea
Software stocks just logged their best month in a quarter century. ServiceNow is up 40% in May alone, and both Snowflake and Okta posted record one-day jumps this week. The so-called 'SaaSpocalypse' — the fear that AI would make traditional software companies irrelevant — has completely evaporated. Instead, investors now see these firms as AI winners. When a whole sector flips from hated to loved this fast, momentum often carries further as holdout funds scramble to catch up.
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