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.