Industry Overview - Software stocks have outperformed hardware stocks by 26 percentage points year to date, with a particular focus on companies involved in artificial intelligence due to their exemption from tariffs [1] Company Analysis: Snowflake - Snowflake specializes in analytics, providing a cloud platform for data unification, sharing, and AI model development, recognized as a technology leader by Gartner [5] - The company has introduced various AI features, including Cortex AI, which offers natural language processing capabilities, and tools for anomaly detection and forecasting [6] - In Q1 fiscal 2026, Snowflake reported an 18% increase in total customers to 11,578, with revenue rising 26% to $1 billion and non-GAAP net income increasing 71% to $0.24 per diluted share [7] - The median target price among 50 analysts for Snowflake is $222 per share, indicating an 8% upside from the current price of $205 [8] - Snowflake's total addressable market is valued at $342 billion by 2028, with expected adjusted earnings growth of 35% annually through fiscal 2027 [9] Company Analysis: Okta - Okta specializes in identity and access management (IAM) software, recognized as an industry leader by Gartner for eight consecutive years [11] - The company provides solutions for customer and workforce identity, supplemented by privileged access management and identity governance products [12] - In Q1 fiscal 2026, Okta's revenue rose 12% to $688 million, with non-GAAP net income increasing 32% to $0.86 per diluted share, although the stock fell due to unchanged full-year guidance [13] - Okta's addressable market is valued at $80 billion, with Wall Street estimating earnings growth of 10% annually through fiscal 2027 [14] - The median target price among 47 analysts for Okta is $130 per share, indicating a 26% upside from the current price of $103 [8]