Software Stocks Rally as “SaaSpocalypse” Fears Ease: Investors Shift From “Replacement Risk” to “AI Enablement Trade” - Tekedia

Software stocks rallied after strong results from Snowflake and Okta eased fears that AI will replace enterprise software.

Investors are increasingly viewing AI as a driver of demand for data, identity, workflow, and security tools rather than a threat to them.

Snowflake jumped on a major Amazon cloud and chip deal plus raised guidance, while Okta rose on AI-linked identity and security demand.

The rebound spread across the sector, lifting names like Atlassian, ServiceNow, Shopify, Workday, Asana, Oracle, and Microsoft.