Nvidia CEO Jensen Huang said markets have misread the impact of artificial intelligence on software companies, even as the chipmaker issued a strong sales forecast driven by robust AI demand.
Huang told
CNBC post Q4 earnings that concerns around AI agents disrupting or cannibalising enterprise software firms are misplaced. “I think the markets got it wrong,” he said, pushing back against the idea that AI tools will replace traditional software businesses.
Instead of displacing them, Huang believes a wide range of software companies will integrate agentic AI into their platforms to improve productivity and enhance their offerings. In what he described as “counterintuitive,” he argued that AI agents are more likely to use existing software tools rather than replace them.
“That’s the reason why we also say agents are tool users,” Huang added as reported by CNBC, suggesting that AI will act as an enabler for software companies rather than a threat.
The remarks followed Nvidia’s blockbuster fourth-quarter results, where revenue surged 73% year-on-year to $68.13 billion, comfortably ahead of analyst estimates of $66.21 billion.
The chipmaker also delivered stronger-than-expected guidance for the current quarter, projecting first-quarter revenue of around $78 billion, plus or minus 2%. That outlook is significantly higher than Wall Street’s forecast of $72.6 billion.
Despite the robust numbers, investor sentiment around the AI trade has been turning cautious. Markets have increasingly questioned whether the extraordinary pace of spending on AI infrastructure can continue, raising concerns that the sector may be overheating.
Software stocks, in particular, have faced heavy selling pressure in recent months. While some analysts warn that AI could eventually disrupt or “consume” parts of the software industry, opinions remain split on how real that threat is and whether the recent correction reflects fundamental weakness or excessive fear.
