By David Jagielski, CPA
Publication Date: 2026-02-11 03:00:00
Software stocks have been falling sharply this year, amid concerns that artificial intelligence will cripple their respective businesses.
One of the big themes in the markets of late has been investors selling off shares of software companies. As artificial intelligence (AI) changes the way business is done, it has the potential to drastically impact the need for software solutions that many companies offer. From coding to doing reports, there are plenty of ways that AI can make it easier for businesses to be less reliant on software providers and reduce the number of subscriptions they have.
Investors have been selling shares of software companies in anticipation of this, expecting them to struggle in the future. But Nvidia (NVDA +0.86%) CEO Jensen Huang, who has been at the forefront of the AI revolution, has a warning for investors, suggesting that the recent sell-off may be unreasonable.
Image source: Getty Images.
Huang calls it ‘illogical’ to expect that AI will replace software
AI has the potential to change the way jobs are done, and it can certainly enhance business products and solutions. But Huang doesn’t believe that AI is going to replace entire businesses, referring to the idea as “the most illogical thing in the world.” He believes that AI can be used with existing tools and software to make them better, rather than outright replacing them.
Nvidia has acted as the fuel that has powered a lot of the growth in AI, with the chipmaker generating fantastic…