Software stocks had an exceptional start to June on Monday Investors understand that AI is not a threat to the industry, quite the contrary. What software values should you monitor in June?
The American software sector delivered one of its strongest trading sessions of the year on Monday June 1st. Among software companies valued at more than $10 billion, 14 stocks gained more than 10%, led by , which jumped 20.4%. Only nine stocks in the sector ended down, with the biggest drop being limited to 5.8%.
The rally was fueled by a series of strong earnings reports that began in late May with . The findings challenged fears of a “SaaSpocalypse,” the belief that artificial intelligence would reduce the need for enterprise software. Instead, recent results suggest that AI is becoming a major growth driver for the industry.
MongoDB was one of the clearest examples. The company reported quarterly revenue of $687.6 million, ahead of expectations of $664.5 million, while adjusted earnings per share came in at $1.32 versus a forecast of $1.19. Its Atlas cloud platform generated $512.5 million in revenue, up 29.4% from the previous year. Management also raised its outlook for the full year.
The gains were widespread. rose 9.7% after reporting quarterly revenue of $11.13 billion, up 13% year-over-year, and announcing a $5 billion strategic investment in Anthropic. soared 12% as developments announced at Nvidia’s Computex event highlighted growing demand for agentic AI running on its network infrastructure.
Nvidia CEO Jensen Huang also reinforced this bullish view during his Computex speech, saying agentic AI would increase software demand rather than replace it. As Huang said: “It’s actually an incredible time to be a software company. »
These American software stocks are undervalued and favored by analysts
For investors looking to capitalize on this underlying dynamic, we turned to Investing.com’s screener to identify software stocks that meet the following criteria:
Market: United States Market capitalization greater than $1 billion Industry: Software Upside potential of more than 25% according to…..
