Software stocks having their best month in 25 years — ride the AI-driven momentum in ServiceNow, Snowflake, and Okta
Software stocks just had their best month since 2001. The fear that AI would kill software companies has flipped — now investors believe AI will make them more valuable. ServiceNow is up 40% this month, and Snowflake and Okta just hit record highs.
Idea
Software stocks were left for dead earlier this year as investors worried AI would replace them. That narrative just reversed hard — May 2026 is the best month for software since 2001. The catalyst is real: Dell's AI server revenue surged 757%, proving companies are spending heavily on AI infrastructure, and that spending flows straight into software platforms like ServiceNow, Snowflake, and Okta. When a whole sector goes from hated to loved this fast, momentum typically carries further as fund managers who missed the move are forced to buy in. These three names are leading the charge and still have room to run as AI-driven growth expectations get revised higher.