Key Points
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CrowdStrike Holdings is an AI-integrated leader in a complex and high-stakes cybersecurity field.
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Snowflake is a crucial data layer for AI, making it an ally, not an adversary.
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Shopify’s complete ecosystem makes it difficult for AI to unbundle.
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The latest artificial intelligence (AI) models are capable enough that it’s fair to wonder whether they can begin to threaten, or even outright replace, many of the traditional software products out there.
Many of the software-as-a-service (SaaS) stocks were market darlings for years due to their exceptional margins and growth. AI hasn’t meaningfully impacted many software companies yet, but recent demonstrations by Anthropic’s Claude are impressive enough to wonder about the coming years.
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As a result, investors have fled software stocks, sending almost every name you can think of plummeting. There hasn’t been this much fear in the software industry in recent memory. As with many things, reality usually lies between two extremes. AI will disrupt some software companies, but probably not all of them.
Here are three software stocks that should not only fare well in the AI age, but also continue to reach new heights. They look like table-pounding buys for 2026 after their recent declines.
Image source: Getty Images.
1. AI will benefit sticky cybersecurity stock CrowdStrike
CrowdStrike Holdings (NASDAQ: CRWD) is one of the world’s leading cybersecurity companies. Its software tracks network devices (endpoints) and sends their data to its cloud-based Falcon Platform, where AI and machine learning analyze it for any malicious threats or suspicious behavior. A key aspect of Falcon is that it continually learns and improves as it ingests more data, making the technology stronger as CrowdStrike grows.
Any AI model or new security app must overcome CrowdStrike’s enormous first-party data advantage, as they can’t scrape public sources for customer device data. Plus, CrowdStrike’s reputation in cybersecurity matters a ton because the stakes are so high. A typical breach can cost millions of dollars, disrupt operations, and tarnish a brand. On the other hand, more intelligent AI may improve CrowdStrike’s capabilities, as it must adapt to increasingly advanced hackers and threats.
The stock recently dropped after an AI security demonstration by Anthropic’s Claude. Investors may want to consider any dip as a gift, a buying opportunity for a stock that rarely comes at a cheap valuation. Shares currently trade at 21 times sales, roughly 20% below CrowdStrike’s average over the past five years.
2. AI is built on top of Snowflake
AI currently excels at presenting information in a variety of ways. In other words, it can replace dashboards, reports, or other surface-level software. What AI cannot do is operate at the fundamental level where the data lives. That’s what makes Snowflake (NYSE: SNOW) one of the largest potential AI winners. Snowflake is a data infrastructure company that helps enterprises securely store and query their data.
Suppose a company wants to use AI agents in its business. Those agents must efficiently and accurately reference that company’s data. Otherwise, garbage in, garbage out, as they say. Snowflake, as the company’s data safe-keeper, makes that happen. It makes Snowflake an integral part of the AI equation, and means that the company becomes more important as AI adoption increases, not less.
Snowflake traded at bubbly levels years ago, but the stock has come back to earth. Today, the stock’s price-to-sales ratio of 13 is very reasonable for a business that grew revenue by 29% year over year in its most recent quarter. Not only is data AI’s DNA, but organizations produce more of it over time. Snowflake is bound to remain a key piece of enterprise software moving forward, so consider scooping up shares for your long-term portfolio.
3. Shopify’s ecosystem stands to resist AI disruption
Shopify (NASDAQ: SHOP) has been instrumental in helping millions of businesses compete in e-commerce against the likes of Amazon and Walmart. Shopify’s software platform gives merchants the technological tools to run virtually every aspect of their business. Merchants can open a store, handle payments, provide customer support, assist with marketing or financial reporting, you name it. Shopify’s cumulative platform volume accounts for roughly 10% of global e-commerce.
Can AI attack aspects of Shopify’s ecosystem? Sure. Someone could use AI to recreate a customer database or a marketing system. But this is on a one-by-one basis. How many businesses will want to break their business operations into many individual applications? That is basically the primary pain point that Shopify alleviates to begin with. Oftentimes, merchants will value convenience and certainty, spending as little time and energy as possible on non-business distractions.
The stock is nearly 30% below its high and trades at just over 14 times trailing-12-month revenue. Meanwhile, Shopify just grew revenue by more than 30% year over year in its latest quarter. The ecosystem’s total sales volume in 2025 was more than triple its volume in 2020. This company still has a long growth runway ahead, and AI shouldn’t prevent investors from riding along as shareholders.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, CrowdStrike, Shopify, Snowflake, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
