- Software stocks had an exceptional start to June on Monday
- Investors understand that AI is not a threat to the industry—quite the contrary
- Which software stocks should you keep an eye on in June?
The US software sector delivered one of its strongest trading sessions of the year on Monday, June 1. Among software companies valued at more than $10 billion, 14 stocks gained over 10%, led by , which jumped 20.4%. Only nine stocks in the sector finished lower, with the biggest decline limited to 5.8%.
The rally was driven by a series of strong earnings reports that began in late May with . The results challenged fears of a “SaaSpocalypse,” the belief that artificial intelligence would reduce the need for enterprise software. Instead, recent earnings suggest 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 forecasts of $1.19. Its Atlas cloud platform generated $512.5 million in revenue, up 29.4% from a year earlier. Management also raised its full-year outlook.
The gains were broad-based. 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. climbed 12% as developments announced during Nvidia’s Computex event highlighted growing demand for agentic AI running on its network infrastructure.
Nvidia CEO Jensen Huang also reinforced the bullish view during his Computex keynote, arguing that agentic AI will increase demand for software rather than replace it. As Huang put it: “This is actually an incredible time to be a software company.”
These US software stocks are undervalued and favored by analysts
For investors looking to capitalize on this underlying momentum, we turned to the Investing.com screener to identify software stocks that meet the following criteria:
- Market: United States
- Market cap over $1 billion
- Industry: Software
- Upside potential of over 25% according to InvestingPro Fair Value, which synthesizes several recognized valuation models
- Upside potential of over 40% based on the average analyst target
- Health score above 2.5/5
This research identified 9 opportunities:
Specifically, these software stocks are trading at discounts of 25.6% to 39.3% based on Fair Value estimates, while analysts see upside potential ranging from 42.4% to 61.1%.
Among these stocks are:
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UBER: Uber Technologies Inc () is using AI to improve efficiency across its business rather than being disrupted by it. Around 95% of its engineers use AI coding tools, and more than 10% of its code is now generated by AI. Strong Q1 2026 results reflected this momentum, with gross bookings rising 25% to $53.7 billion and adjusted EBITDA increasing 33%.
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TRMB: Trimble Inc () provides software and technology solutions for construction, agriculture, transportation, and infrastructure. The company continues to expand its SaaS business while integrating AI into its offerings, including through the acquisition of Document Crunch, which uses AI to analyze construction documents.
However, many other stocks on this list have far more attractive profiles.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.
