Nvidia’s Jensen Huang thinks markets “got it wrong” on software stocks sell-off
Nvidia CEO Jensen Huang said markets have misjudged AI’s impact on software firms in a CNBC interview on Wednesday, hours after the chip designer reported better-than-expected Q4 results and a strong sales outlook for the current quarter.
So far this year, a slew of software stocks, like Adobe, DocuSign, and Workday, have cratered amid mounting concerns that AI agents would eventually displace traditional enterprise software models.
Huang, however, said he believes “the markets got it wrong,” describing agentic AI as “tool users” of existing software rather than a threat to it.
Products like Microsoft Excel, or platforms such as Cadence, Synopsys, ServiceNow, and SAP, all “exist for a fundamentally good reason,” he said, adding that agentic AI will be using those tools “on our behalf and help us be more productive.”
The leader of the world’s most valuable publicly traded company has struck a consistent tone on this subject, perhaps because some of his biggest customers and most eager adopters of AI are in this industry. Earlier this month, Huang called the idea that the software industry would be replaced by AI the “most illogical thing in the world,” arguing that AI agents will leverage existing software tools rather than reinvent them.
So far this year, a slew of software stocks, like Adobe, DocuSign, and Workday, have cratered amid mounting concerns that AI agents would eventually displace traditional enterprise software models.
Huang, however, said he believes “the markets got it wrong,” describing agentic AI as “tool users” of existing software rather than a threat to it.
Products like Microsoft Excel, or platforms such as Cadence, Synopsys, ServiceNow, and SAP, all “exist for a fundamentally good reason,” he said, adding that agentic AI will be using those tools “on our behalf and help us be more productive.”
The leader of the world’s most valuable publicly traded company has struck a consistent tone on this subject, perhaps because some of his biggest customers and most eager adopters of AI are in this industry. Earlier this month, Huang called the idea that the software industry would be replaced by AI the “most illogical thing in the world,” arguing that AI agents will leverage existing software tools rather than reinvent them.
