Key insights
- Nvidia CEO Jensen Huang's comments dismissing AI disruption fears for software companies triggered a broad rally in the sector. Stocks like ServiceNow, IBM, and Salesforce surged, indicating market optimism that AI agents will increase demand for software tools rather than replace them. This positive sentiment suggests a bullish outlook for technology and enterprise software companies navigating the AI landscape.
Investing.com -- Software stocks rallied broadly on Monday after Nvidia CEO Jensen Huang dismissed concerns that the industry faces disruption from advanced AI tools.
ServiceNow (NYSE:NOW) surged 10%, while IBM (NYSE:IBM) jumped 12%, leading gains across the sector. Salesforce (NYSE:CRM) rose 6.5%, Atlassian (NASDAQ:TEAM) gained 6.6%, and HubSpot (NYSE:HUBS) climbed 6%. Adobe (NASDAQ:ADBE) and Workday (NASDAQ:WDAY) each advanced 5%, while Veeva Systems (NYSE:VEEV) added 4% and Microsoft (NASDAQ:MSFT) rose 4%. Palantir (NYSE:PLTR) gained 3% and Palo Alto Networks (NASDAQ:PANW) increased 2%. The iShares Expanded Tech-Software Sector ETF rose 4.7%.
The rally followed Huang’s keynote speech at the Computex trade show in Taipei, where he addressed industry concerns about AI’s impact on software companies.
"This is actually an incredible time to be a software company," Huang said during his presentation. "A lot of people have said, Jensen, agentic AI is coming, therefore all of the software companies are going out of business. I said: it’s exactly the opposite. Because there are going to be so many agents, the world is no longer limited by the number of people. Therefore, those agents are going to use more tools than ever."
Huang’s comments came amid growing debate about whether AI agents could replace traditional software applications. His remarks suggested that the proliferation of AI agents would instead increase demand for software tools rather than diminish it.
The broad-based gains across enterprise software, cybersecurity, and cloud computing stocks reflected market optimism about the sector’s positioning in an AI-driven landscape.
Most traders can read a chart. The hard part is the moment: entry window open, pattern forming, and you're still waiting for more confirmation. That's the conviction gap — and our chart analysis closes it. Unlike other AIs that just read data, our Vision AI literally "sees" your charts and hands you a complete trading plan: entry, stop-loss, and profit target in under 60 seconds. Know exactly what to do next, every time.