A rare opportunity to buy US software growth stocks like Salesforce, Snowflake, and CrowdStrike at a bargain price?

US software growth stocks have been absolutely hammered lately. As a result, some of these stocks are now trading low time price-to-earnings (P/E) and/or sales ratios.

Could there be a rare opportunity here for long-term investors? Let’s look at the state of the world.

Are fears of AI overblown?

The reason these shares have fallen recently is that investors have become concerned that Artificial Intelligence (AI) solutions from Anthropic (Claude) and OpenAI (ChatGPT) will destroy their business models. The idea here is that businesses will be able to create their own software using AI and therefore won’t need to pay ongoing fees to companies like Salesforce, Service Now, Monday.comagain Snowflake (NYSE: CHOICE).

Now, there is no doubt that AI will disrupt other software companies. But I think there is a level of panic (and loading) in the market right now that is unwarranted.

I believe that many software companies will continue to do well in the AI ​​era. Therefore, there may be an investment opportunity that is starting to emerge.

This stock looks oversold

One stock I see as oversold right now is Snowflake. It is a data warehousing and analytics company that helps businesses store and organize their data so they can apply AI to it.

It dropped from $265 to $168 recently (down about 40%). After that drop, the average selling price dropped to 10 – a record low.

My belief is that this company – which has been growing exponentially – will continue to thrive in the AI ​​era. Because it focuses on the one thing AI can’t function without – data.

Competition from rivals such as Databricks and Amazon it is dangerous. However, with an average of 4.6 on GartnerI hope the company can continue to improve, so I think it’s worth checking out.

Other opportunities in software

Turning to Salesforce – one of the largest software companies in the US – looks interesting, in my opinion.

Its customer relationship management (CRM) platform may be disrupted. However, businesses all over the world depend on it and switching costs are high so I don’t expect the company’s revenue to suddenly fall off a cliff.

Meanwhile, the company introduced powerful solutions for AI agents. Therefore, it can end up doing well as businesses do their jobs for themselves.

As for its valuation, it currently trades at a price-to-earnings (P/E) ratio of 16 – one of the all-time lows. On that repeat, I think it’s worth a look.

Zooming in on the cybersecurity powerhouse CrowdStrikeI wouldn’t say this is a ‘once in a decade’ opportunity to buy as this stock has experienced a steep decline in recent years. However, after dropping from $550 to $395, I think it’s worth a look.

In my opinion, AI is unlikely to reduce the need for cybersecurity software. If anything, AI should increase the need for cyber security because firms will have to protect themselves from more threats.

Of course, cybersecurity is a dynamic industry so there is no guarantee that this company will continue to be successful. But with the stock currently trading 30% below its recent high at a very low price, I see very little potential.