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5 Software Stocks That Could Keep Soaring as AI Disruption Fears Fade
Software stocks soared on Monday as investors grow increasingly confident that artificial intelligence (AI) will serve as a powerful growth catalyst rather than an existential threat to the industry's business models.
Earlier concerns that generative AI could commoditize software products, compress pricing power, and disrupt incumbent vendors have begun to fade as companies demonstrate the ability to embed AI features into their platforms, drive customer adoption, and unlock new revenue opportunities.
Keeping this in mind, here are five software stocks that investors may want to keep an eye on as they may continue to rally if AI disruption fears continue to fade.
Atlassian – TEAM
Zacks Rank #1 (Strong Buy)
As a global leader and innovator in the enterprise collaboration and workflow software space, Atlassian (TEAM - Free Report) ) stock was well oversold on technical indicators but has rebounded nearly 60% over the last three months despite still being down roughly 30% year to date (YTD).
This comes as investors have recognized Atlassian's strong enterprise demand and record deal closures. As suggested by its strong buy rating, the rally in Atlassian stock could very well continue considering EPS estimates for fiscal 2026 and FY27 have spiked 17% and 13% in the last 60 days, respectively.
Datadog – DDOG
Zacks Rank #2 (Buy)
Datadog (DDOG - Free Report) ) is a monitoring and analytics platform for developers, IT operations teams, and business users in the cloud age and has seen its stock skyrocket 150% in the last three months.
Although Datadog was previously oversold due to AI fears, shares have surged to new all-time highs as analysts have highlighted strong observability leadership that could lead to even more upside with regard to its position as a top industry-defining platform for understanding the health, performance, and behavior of modern cloud systems.
Docusign – DOCU
Zacks Rank #2 (Buy)
Backed by favorable analyst ratings, Docusign (DOCU - Free Report) stock has been rebounding on the strength of its underlying fundamentals and growing adoption of its Intelligent Agreement Management (IAM) platform, which is expanding the company's growth opportunities beyond traditional e-signature services.
Still trading roughly 40% below its 52-week high of $94 a share, Docusign hasn't staged a dramatic recovery like some of the other software stocks on this list but has climbed more than 15% over the last month as investors grow increasingly optimistic about the company's AI-driven product strategy and long-term growth prospects.
Intuit – INTU
Zacks Rank #2 (Buy)
Like Docusign, Intuit (INTU - Free Report) ) stock has also been flagged as oversold despite robust recurring revenue from its accounting and tax preparation software services such as TurboTax, QuickBooks, and Credit Karma. Still, analysts maintain high confidence even with Intuit stock falling more than 40% YTD and trading around $350 a share compared to a 52-week and all-time high of over $800.
Optimistically, FY26 and FY27 EPS estimates are modestly higher in the last two months, with Intuit’s annual earnings expected to increase 16% this year and projected to rise another 15% next year to $27.03 per share.
Snowflake – SNOW
Zacks Rank #3 (Hold)
Rounding out the list is Snowflake (SNOW - Free Report) ), a cloud-native software platform built to unify structured, semi-structured, and unstructured data, and is considered the heart of the AI Data Cloud.
Snowflake stock fell to new lows last year after investors feared that AI-driven software-as-a-service (SaaS) disruption could weaken its business model. That said, Snowflake’s financial results and AI adoption data have showed those fears were overblown, leading to a 60% rebound in the last three months and hitting a new 52-week high of over $280 a share in today’s trading session.
Bottom Line
The rebound in software stocks has been fueled by a combination of improving fundamentals and easing uncertainty. To that point, enterprise spending trends remain resilient, cloud demand continues to strengthen, and management teams across the software landscape are reporting growing customer interest in AI-powered solutions.
Rather than replacing traditional software vendors, AI is increasingly being viewed as an accelerator for productivity, automation, and workflow efficiency — benefits that many established software companies are well positioned to monetize through their existing customer bases.
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5 Software Stocks That Could Keep Soaring as AI Disruption Fears Fade
Software stocks soared on Monday as investors grow increasingly confident that artificial intelligence (AI) will serve as a powerful growth catalyst rather than an existential threat to the industry's business models.
Earlier concerns that generative AI could commoditize software products, compress pricing power, and disrupt incumbent vendors have begun to fade as companies demonstrate the ability to embed AI features into their platforms, drive customer adoption, and unlock new revenue opportunities.
Keeping this in mind, here are five software stocks that investors may want to keep an eye on as they may continue to rally if AI disruption fears continue to fade.
Atlassian – TEAM
Zacks Rank #1 (Strong Buy)
As a global leader and innovator in the enterprise collaboration and workflow software space, Atlassian (TEAM - Free Report) ) stock was well oversold on technical indicators but has rebounded nearly 60% over the last three months despite still being down roughly 30% year to date (YTD).
This comes as investors have recognized Atlassian's strong enterprise demand and record deal closures. As suggested by its strong buy rating, the rally in Atlassian stock could very well continue considering EPS estimates for fiscal 2026 and FY27 have spiked 17% and 13% in the last 60 days, respectively.
Datadog – DDOG
Zacks Rank #2 (Buy)
Datadog (DDOG - Free Report) ) is a monitoring and analytics platform for developers, IT operations teams, and business users in the cloud age and has seen its stock skyrocket 150% in the last three months.
Although Datadog was previously oversold due to AI fears, shares have surged to new all-time highs as analysts have highlighted strong observability leadership that could lead to even more upside with regard to its position as a top industry-defining platform for understanding the health, performance, and behavior of modern cloud systems.
Docusign – DOCU
Zacks Rank #2 (Buy)
Backed by favorable analyst ratings, Docusign (DOCU - Free Report) stock has been rebounding on the strength of its underlying fundamentals and growing adoption of its Intelligent Agreement Management (IAM) platform, which is expanding the company's growth opportunities beyond traditional e-signature services.
Still trading roughly 40% below its 52-week high of $94 a share, Docusign hasn't staged a dramatic recovery like some of the other software stocks on this list but has climbed more than 15% over the last month as investors grow increasingly optimistic about the company's AI-driven product strategy and long-term growth prospects.
Intuit – INTU
Zacks Rank #2 (Buy)
Like Docusign, Intuit (INTU - Free Report) ) stock has also been flagged as oversold despite robust recurring revenue from its accounting and tax preparation software services such as TurboTax, QuickBooks, and Credit Karma. Still, analysts maintain high confidence even with Intuit stock falling more than 40% YTD and trading around $350 a share compared to a 52-week and all-time high of over $800.
Optimistically, FY26 and FY27 EPS estimates are modestly higher in the last two months, with Intuit’s annual earnings expected to increase 16% this year and projected to rise another 15% next year to $27.03 per share.
Snowflake – SNOW
Zacks Rank #3 (Hold)
Rounding out the list is Snowflake (SNOW - Free Report) ), a cloud-native software platform built to unify structured, semi-structured, and unstructured data, and is considered the heart of the AI Data Cloud.
Snowflake stock fell to new lows last year after investors feared that AI-driven software-as-a-service (SaaS) disruption could weaken its business model. That said, Snowflake’s financial results and AI adoption data have showed those fears were overblown, leading to a 60% rebound in the last three months and hitting a new 52-week high of over $280 a share in today’s trading session.
Bottom Line
The rebound in software stocks has been fueled by a combination of improving fundamentals and easing uncertainty. To that point, enterprise spending trends remain resilient, cloud demand continues to strengthen, and management teams across the software landscape are reporting growing customer interest in AI-powered solutions.
Rather than replacing traditional software vendors, AI is increasingly being viewed as an accelerator for productivity, automation, and workflow efficiency — benefits that many established software companies are well positioned to monetize through their existing customer bases.