Software stocks soared after Snowflake’s blowout earnings report sent the stock up 36% on May 28.
Days later, Huang’s comment fueled a fresh rally in the space, piling on to the bullish sentiment that helped lift many beaten-down stocks out of their rut.
“This is actually an incredible time to be a software company,” Huang said, dismissing the fears about an AI-driven wipeout that sent the sector spiraling in the first quarter of the year.
The iShares Expanded Tech-Software Sector ETF saw nearly 6% gains on Monday, adding to the more than 6% rally the Friday before.
“A lot of people have said, ‘Jensen, AI is coming. Agentic AI is coming. Therefore, all of the software companies are going to go out of business.’ I said it’s exactly the opposite because there are going to be so many agents,” Huang said.
It’s not the first time that the CEO pushed back on the idea that AI would eat software. He said the idea that AI will replace software is the “most illogical thing in the world” as AI hype turned to fear and pummeled software stocks in the first quarter.
