iShares Software ETF Jumps 21% in Best Month Since 2001 as Snowflake, Okta Surge
Updated
Updated · CNBC · May 29
iShares Software ETF Jumps 21% in Best Month Since 2001 as Snowflake, Okta Surge
1 articles · Updated · CNBC · May 29
The iShares Expanded Tech-Software ETF climbed 8% this week and finished May up 21%, its strongest monthly gain since October 2001.
Snowflake and Okta drove the rebound after upbeat earnings suggested some software companies are benefiting from AI demand rather than being displaced by it.
Snowflake surged nearly 50% in four sessions after a $6 billion cloud-and-chip deal with Amazon and higher guidance, while Okta jumped a record 30% on Friday on strong results and rising demand for AI-era identity security.
The rally spread across the sector: Atlassian gained 26% for the week, ServiceNow more than 20%, and Shopify, Workday and Asana at least 14%.
Even after May's rebound, the ETF is still down 3.8% in 2026, lagging the Nasdaq's 18% gain as investors continue to weigh AI disruption across software.
Is this software rally a true AI turning point or just delaying the inevitable 'SaaSpocalypse'?
As agentic AI emerges, is your company's data foundation an asset or a critical business liability?
When autonomous AI agents make costly mistakes, who will ultimately be held responsible for their actions?
Software Sector Soars: IGV’s 42% Jump in 2026 Fueled by AI, Cloud, and Strategic Earnings
Overview
In April and May 2026, the software sector rallied strongly, driven by the AI boom and a surge in AI infrastructure spending that is fundamentally reshaping technology. Companies like Snowflake led the way by executing real strategies, such as beating Q1 earnings, raising sales guidance, acquiring AI startup Natoma, and securing a $6 billion multiyear agreement with Amazon for recurring AWS revenue. This wave of innovation and measurable results fueled investor confidence, highlighting how AI is not only boosting individual company performance but also transforming the entire software landscape.