Software Stocks Surge as Sector Rally Extends, Snowflake and Dell Results Break SaaS Gloom

Software stocks jumped on June 2, extending a rally that propelled the iShares Expanded Tech-Software ETF to a 21% gain in May—its best monthly performance since October 2001. The surge follows Snowflake and Dell results that shattered the “SaaSpocalypse” narrative, which had driven enterprise software shares 20-40% below highs. Snowflake reported 34% revenue growth to $1.39 billion and a rapid increase in AI accounts to 13,600. Dell confirmed $16.1 billion in AI server revenue, up 757%, with a $51.3 billion backlog. The data reinforced that AI is accelerating, not displacing, enterprise software demand. Nvidia CEO Jensen Huang’s Computex keynote framed agentic AI as the next platform shift, validating the software layer’s role. ServiceNow rose 10%, adding to a 26% two-session gain. Okta held a 30% post-earnings surge, while MongoDB sustained momentum after 25% revenue growth. BlackLine, 8x8, and Marqeta also soared, though BlackLine remains down 41% year-to-date at $31.72. Intuit’s recent 19% drop on AI-driven restructuring continues to highlight structural risks in legacy SaaS.