Software stocks just had their best month since 2001.

Up 21% in May.

This is wild because these same stocks got destroyed earlier this year. Like, two trillion dollars just vanished.

Everyone thought AI was going to kill the entire software industry.

Dario from Anthropic said it. Straight up said AI could do most of software engineering by now.

That spooked people hard.

But what actually happened is different. Companies using AI still needed software to make it work. Snowflake had its best day ever. Customers buying more tools, not fewer.

Then last week Dario basically said he was wrong about the jobs thing. Sam Altman said it too.

They got scared they were right. Turns out they weren't.

So people panic sold.

Software got cheap.

Now the companies using AI actually need more software, not less. The thing that was supposed to kill the industry ended up needing the industry to survive.