SaaS concept stocks are experiencing a broad-based rally.

At the time of writing, Inspur Digital Enterprise (HKEX: 00596) has surged 24.32% to HK$4.14.

Kingdee International (HKEX: 00268) is up 18.16% at HK$8.59.

Marketingforce (HKEX: 02556) has gained 13.73%, trading at HK$40.76.

Chinasoft International (HKEX: 00354) has risen 11.89% to HK$4.14.

Weimob Inc (HKEX: 02013) is 10.32% higher at HK$1.39.

The rally is driven by a shift in market sentiment. Previously, the software sector was weighed down by a pessimistic narrative that artificial intelligence would erode its value, causing the software index IGV to pull back by 30% in early 2026.

This narrative has been challenged by recent financial results. Last week, strong earnings and guidance from AI infrastructure companies like Snowflake, MongoDB, and Okta exceeded expectations, propelling the IGV index up 8% for the week. Snowflake's stock soared 48.4%, while Okta jumped 33.6%.

Analysts point out that as May progressed, major software firms including Snowflake, MongoDB, and Salesforce all reported better-than-anticipated results. This has prompted the market to reassess how software companies will benefit in the AI era, sparking a powerful sector rebound.

The IGV index surged over 21% for the month, marking its strongest monthly performance since October 2001. The strong earnings have effectively disproven the "AI consumption" narrative, unleashing a full-scale recovery in valuations.