Summary:
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Nvidia CEO Jensen Huang says markets are misjudging AI’s impact on software firms.
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Huang argues AI will enhance, not replace, companies like ServiceNow.
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Q4 revenue surged 73% y/y to $68.13bn, beating estimates.
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Q1 guidance of $78bn ±2% significantly topped expectations.
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Strong outlook counters concerns of an AI hardware spending bubble
Nvidia CEO Jensen Huang pushed back against fears that artificial intelligence will undermine traditional software companies, arguing markets have misjudged the sector’s evolution.
Speaking to CNBC shortly after Nvidia delivered stronger-than-expected results, Huang said investors were wrong to assume AI agents would displace established enterprise platforms.
“I think the markets got it wrong,” Huang said, pointing to companies such as ServiceNow. He argued that leading software firms are best positioned to integrate AI tools into their existing ecosystems, fine-tuning agents to optimise workflows rather than being disrupted by them.
“In the end, we need the tools to finish their work and put the information back in a way that we can understand,” Huang added, framing AI as an enhancement layer rather than a substitute for enterprise software.
The comments came as Nvidia posted a blockbuster fiscal fourth-quarter report. Revenue climbed 73% year-on-year to $68.13 billion, beating consensus expectations of $66.21 billion. Even more striking was forward guidance: Nvidia forecast fiscal first-quarter revenue of $78 billion, plus or minus 2%, comfortably above the $72.6 billion analysts had pencilled in.
The upbeat outlook directly addresses growing investor unease that the extraordinary surge in AI-related hardware spending may prove unsustainable. Concerns of an AI bubble have intensified as hyperscalers ramp capital expenditure, prompting questions about demand durability.
For now, Nvidia’s numbers suggest AI infrastructure investment remains robust. Huang’s broader message is that the AI wave will expand the technology stack, from chips to software, rather than hollow it out.
This article was written by Eamonn Sheridan at investinglive.com.