Trades around AI have recently roiled markets, sending software stocks tumbling and raising investor concerns that some companies may not survive. According to one of AI’s most prominent CEOs, they’re all overreacting.
Nvidia CEO Jensen Huang recently addressed the company’s post-earnings software sale on Wednesday, clarifying why he believes the recent panic over AI news is largely overblown. Despite the decline, we believe the industry will ultimately benefit from the rise of agent AI technology.
“I think the market got it wrong,” he said on CNBC after Nvidia’s fourth-quarter results were a big hit. “I think it’s very likely that these companies that we’re talking about will deploy agents that run on their platforms.”
One example Huang cited is ServiceNow. The software maker has been one of the victims of AI fear trading, dropping more than 20% over the past month. But in his view, the company is well-positioned to bounce back by deploying AI agents to enhance operations and streamline productivity.
Huang also used his company as an example to illustrate his point, emphasizing the important role he expects AI agents to continue to play in Nvidia’s future.
“I have 42,000 biological employees, but we’re going to have hundreds of thousands of digital employees, and together we’re going to use many more tools,” he said.
Nvidia’s CEO has revealed that he sees a future where AI agents will continue to write code and create software for companies that will benefit from strong demand.
While that may conjure up images of a human-less workforce, Huang argued that does not eliminate the need for human labor.
“The purpose of work will remain the same,” Huang predicted. “We’re going to need a lot more software engineers. But they probably won’t need to code the way they used to. They’ll code in new ways.”
Huang is not alone in speculating that software stocks could continue to rise despite concerns about AI. Analysts at Deutsche Bank recently shared a note on Anthropic, saying they do not believe the technology will replace current systems.
Despite significantly beating earnings and guidance expectations, the market reaction was lukewarm, demonstrating the depth of investor AI fatigue. Shares fell as much as 5% on Thursday.
