Some software stocks are breaking out of the AI-driven 'SaaSpocalypse.' JPMorgan likes these names

Things may be turning around for one of the most beaten-down parts of the stock market: software. The iShares Expanded Tech-Software ETF (IGV) is up nearly 14% over the past month. It also gained more than 4% in April, snapping a three-month decline. Still, the IGV is down 14% for the year, as investors fear artificial intelligence will take market share from many software-as-a-service companies — leading to a "SaaSpocalypse." But the recent move higher could have legs, especially as several individual stocks break out. "Software as a group is far less correlated than semiconductors recently, with some members of the index having already broken out from their respective multi-week base patterns," wrote Jason Hunter, technical strategist at JPMorgan. Hunter highlighted several software names experiencing such moves. Among them: Palo Alto Networks , Oracle , Microsoft and CrowdStrike . Oracle is the best performer of the four, rising more than 35.5% over the past month. The stock closed at $194.59 on Thursday, not far from levels last seen in January. ORCL 1Y bar ORCL 1-yr Microsoft, up 3.2% in May and 12% over the past month, is also positioning for a move higher. The stock in April broke back above $400 after tumbling below the level in mid-March. It also closed at $420.77 on Thursday, near levels not seen since February. MSFT YTD bar MSFT in 2026 Palo Alto Networks and CrowdStrike, meanwhile, closed Thursday at their highest levels since December. …