By Trevor Jennewine
Publication Date: 2026-02-08 08:57:00
Nvidia’s Jensen Huang believes the sell-off in software stocks is overdone.
The S&P North American Technology Software Index has declined 30% from its high amid concerns about how artificial intelligence (AI) tools might disrupt the software industry. That puts the index, which tracks 111 software stocks, in bear market territory.
However, Jensen Huang, CEO of Nvidia (NVDA +8.01%), says the software rout is utterly illogical. Here are the important details, including five software stocks that now trade at very attractive prices.
Image source: Getty Images.
Jensen Huang says negativity surrounding software stocks is unwarranted
Several companies have introduced artificial intelligence (AI) tools that automate software development, letting programmers use natural language to generate, debug, and refine code. More recently, Anthropic introduced an AI tool (Cowork) built on similar architecture but targeted at non-technical workflows like sales, finance, and marketing.
Anthropic’s Cowork is the root cause of the ongoing rout in software stocks. But Nvidia CEO Jensen Huang says the market has overreacted. “There’s a whole bunch of software companies whose stock prices are under a lot of pressure because somehow AI is going to replace them,” he remarked. “It is the most illogical thing in the world.”
Ultimately, Huang thinks companies will use AI tools alongside existing software products to accomplish work, rather than using AI to reinvent software. “Would you use a hammer or…
