Huang's AI Comments Fuel Software Stock Rally

Nvidia's CEO Jensen Huang recently spoke at the Computex 2026 technology conference in Taipei, where he addressed concerns that AI agents would disrupt the software market. Instead, Huang believes agentic AI will create opportunities for its partner companies.

Huang mentioned ServiceNow specifically, saying that it is creating 'the largest opportunity' for his partners. This comes after Nvidia and ServiceNow announced an expansion of their partnership to build AI agents for enterprises on March 5. Last week, ServiceNow shares rose by 41%, making it the stock's best move since its initial public offering in June 2012.

Investors appear to be rotating back into software stocks after Huang's comments, with NOW shares gaining an additional 7% in premarket trading on Monday. The iShares Expanded Tech-Software Sector ETF (IGV) rallied 21% in May, its best move since October 2001.