Software stocks having their best month since 2001 — ride the AI rally with Snowflake, ServiceNow, and Okta
Software stocks are wrapping up their strongest month in over two decades. The panic that AI would destroy software companies has flipped — now investors see AI as a growth engine for the sector.
Idea
Software stocks just posted their best monthly gain since 2001, led by companies like Snowflake and Okta which both saw record single-day pops this week. ServiceNow is up 40% in May alone. The narrative has completely flipped — a few months ago investors worried AI would replace software companies, but now strong earnings are proving AI actually drives more demand for their products. When an entire sector reverses a doom narrative this violently, institutional money is still playing catch-up and pushing prices higher. The momentum is broad, with multiple software names hitting new highs, which makes a basket approach safer than betting on just one name.