Snowflake CEO Sridhar Ramaswamy will help ring the closing bell at the New York Stock Exchange on September 30, 2025.
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“SaaSpocalypse” may not be over yet. But for now, at least, concerns about the software’s demise have subsided.
Software stocks soared this week on strong earnings results. snowflake and OctaThis suggests that some companies are weathering the disruption of artificial intelligence better than Wall Street expected.
of iShares expands technology software exchange-traded fund It rose 8% this week and ended May with a 21% gain, the ETF’s best monthly performance since October 2001. While it was a brief rally during the dot-com bust, the current rally is driven by concerns about AI spillover across the sector.
Software names have been hit particularly hard over the past year due to the so-called vibecoding boom, allowing users to build apps and websites in minutes thanks to products like Anthropic and OpenAI.
With this month’s gains, the iShares Software ETF is down just 3.8% for the year, still far behind the Nasdaq, which rose 18% in 2026.
Data platform provider Snowflake has been a big driver this week, posting its best day ever on Thursday and rising nearly 50% in four trading days after Monday’s holiday. The company announced a $6 billion deal with Cloud and Chip. Amazon And as customers gravitate toward more AI tools, it has raised its guidance.
“We’re seeing customers deploy and scale workloads at a faster pace,” CEO Sridhar Ramaswamy told analysts on the company’s earnings call.
Analysts at Argus Research called Snowflake a “pick-and-shovel” play on generative AI and raised their price target to $300 from $250. Shares closed Friday at $255.55, up 17% since the beginning of the year.
“We believe Snowflake may indeed benefit from GenAI developments, as enterprises increasingly need to integrate and harmonize their data, which is Snowflake’s core business, to leverage the benefits of GenAI,” analysts said in a post-earnings report.
Okta was also a big winner among investors, posting a record 30% gain on Friday. The company reported better-than-expected results and said the move to agent AI is forcing businesses to invest in identity security tools and expand their defenses against waves of bot armies.
Okta CEO Todd McKinnon told CNBC that “AI products will take more time to develop, but every organization will be building and deploying agents.” “This is the basic infrastructure that we will need for years to come.”
Elsewhere in the software space, atlassian Up 26% for the week, ServiceNow While prices soared more than 20%, Shopify, working day and Asana each increased by at least 14%.
Some software giants that also sell cloud infrastructure include oracle rose 16%, microsoft It rose nearly 8%. But Microsoft is still down nearly 7% since the beginning of the year, making it the worst performer among tech giants.
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