Software Stocks Rally as AI Workloads Invert 'SaaSpocalypse' Fears; IGV Up 21% in May

Software stocks extended their rally on June 2, 2026, after Snowflake and Dell results dismantled the “SaaSpocalypse” narrative that had erased $2 trillion from sector valuations since late 2025. The iShares Expanded Tech-Software ETF (IGV) closed May up 21%, its best month since October 2001, as back-to-back quarterly beats showed AI accelerating—not displacing—enterprise software demand. Snowflake’s revenue surged 34% to $1.39 billion, with AI accounts jumping from 9,100 to 13,600 in a single quarter. Dell confirmed $16.1 billion in AI server revenue, a 757% increase, against a $51.3 billion committed backlog. Nvidia CEO Jensen Huang’s Computex keynote framed agentic AI as the next platform shift, further validating the software layer that orchestrates those agents. ServiceNow gained 10%, bringing its two-session climb to 26%, while Okta held its 30% post-earnings surge. MongoDB sustained momentum after 25% revenue growth, and CrowdStrike traded near a 52-week high ahead of June 3 earnings. Unity shares edged higher, but the move was seen as incremental rather than transformative.