Nvidia CEO Jensen Huang believes investors are getting one key thing wrong about artificial intelligence. The fear that AI will wipe out enterprise software companies, he argues, is misplaced.
Speaking to CNBC just hours after Nvidia posted another blockbuster quarter, Huang pushed back against the idea that so-called agentic AI will cannibalise the software industry. Instead, he said, AI agents will rely on existing software tools to get work done, not eliminate them.
Huang’s comments came as Nvidia delivered results that once again underscored the scale of AI demand. The company reported fiscal fourth-quarter revenue of $68.13 billion, up 73% year-on-year and ahead of expectations of $66.21 billion. For the current quarter, Nvidia guided for $78 billion in revenue, plus or minus 2%, comfortably above forecasts of $72.6 billion. Shares climbed up to 2% in extended trading.
“Markets got it wrong”
Huang was direct. “I think the markets got it wrong,” he said, dismissing concerns that AI agents will “eat” traditional software businesses.
He described the dynamic as counterintuitive. Rather than replacing enterprise tools, AI agents will act as intelligent users of them.
He pointed to familiar examples such as internet browsers and Microsoft Excel, arguing that these tools exist for a reason and will remain essential. According to Huang, agentic AI systems will operate on behalf of users, tapping into platforms from companies like Cadence, Synopsys, ServiceNow and SAP to complete tasks more efficiently.
“These tools exist for a fundamentally good reason,” Huang said, adding that AI agents will be “intelligent software that uses these tools on our behalf and help us be more productive.”
In his view, software leaders will build highly optimised AI agents tailored to their own ecosystems. “Nobody’s going to service better than ServiceNow,” he said, suggesting incumbents are well positioned to embed AI directly into their workflows.
Ultimately, Huang argued, humans will still need structured outputs and integrated systems. AI may generate and process information, but software platforms will remain the backbone that organises and presents it in usable form.
Software stocks have been under pressure in recent months, reflecting concerns that AI-driven automation could compress pricing, erode competitive moats and lower barriers to entry.
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