Investing.com -- Software stocks are rallying sharply after Monday’s DeepSeek-induced decline, with significant volume-driven moves across the sector. The IGV Software (ETR:SOWGn) ETF traded at 190% of its average volume, pushing it to two-month highs relative to semiconductor indices and highlighting strong demand for midcap software names.

Elastic (NYSE: ESTC) N.V. shares jumped more than 10%, Datadog Inc (NASDAQ: DDOG) surged over 7%, and other notable gainers included Autodesk (NASDAQ: ADSK), UiPath (NYSE: PATH) Inc, Zoom (NASDAQ: ZM), Salesforce (NYSE: CRM), CrowdStrike (NASDAQ: CRWD), ServiceNow (NYSE: NOW), Oracle (NYSE: ORCL), and Palantir (NASDAQ: PLTR), all rising between 3% and 9%.

The rally follows a rebound in Nvidia (NASDAQ: NVDA), up more than 7%,along with other AI plays. “Today's move in Software appears to be genuine and not just short covering,” Mizuho (NYSE: MFG) analyst said calling it a wake-up call for investors seeking opportunities amid broader AI market adjustments.

While larger tech names like Amazon (NASDAQ: AMZN) up 1.7%, Meta (NASDAQ: META) up 2.5%, and Apple (NASDAQ: AAPL) up 3,7% also remain resilient.