By Bram Berkowitz, The Motley Fool
Publication Date: 2026-03-04 14:41:00
Although software stocks have gotten a little reprieve on Wall Street recently, the iShares Expanded Tech-Software Sector ETF (NYSEMKT: IGV) is still down by more than 20% since the beginning of the year as of the close of trading on Tuesday. Investors have been lowering their terminal multiples on these stocks, and selling them due to concerns that artificial intelligence (AI) will be able to build similar software products and services much more quickly and efficiently.
Models from Claude to Perplexity to ChatGPT are certainly impressive, and they can complete a range of different tasks well. So it’s understandable that investors and consumers are unsure about what the tech world is going to look like in the future. However, in a recent interview on CNBC, Nvidia CEO Jensen Huang said “the markets got it wrong” on enterprise software. Here’s his argument.
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Concerns about where the trend is heading have mounted as AI companies have released new agentic AI tools and chatbots that not only can answer queries and create certain types of content when prompted, but can also carry out tasks that might have otherwise required more time.
For instance, Claude Cowork can conduct a range of tasks, such as…
